529 PLANS

Nebraska Education Savings Trust -- Advisor College Savings Plan

Nebraska

Nebraska Education Savings Trust -- Advisor College Savings Plan switched program managers in December 2010 from Union Bank and Trust Company of Lincoln, Nebraska to First National Bank of Omaha. Accounts can be linked to the Upromise rewards service. To find a financial advisor in your area, use the Directory of Financial Professionals.

5-Cap Rating

Resident:
Non-Resident:

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
3.08 4.00 4.90 4.20 0.40

Find an advisor

Enroll in Nebraska Education Savings Trust -- Advisor College Savings Plan through a financial advisor. Search our directory of qualified financial professionals to find one near you.

General

Program type:

Savings

How to enroll:

Enroll through a financial advisor. Find a Professional

Initial year of operation:

2001, but substantially changed December 2010

State agency(ies):

Nebraska State Treasurer and Nebraska Investment Council

Program manager:

First National Bank of Omaha

Program distributor:

First National Capital Markets, Inc

Manager contract term:

Through 2017. May be extended for and additional three one-year terms through mutual agreement.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. resident individuals with a valid Social Security number or taxpayer ID number, UGMA/UTMA custodians, legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Nebraska's 529 plans for the same beneficiary reach $360,000.

Minimum contributions:

No minimum.

Investment Options

Age-based investment options:

The Age-Based Portfolios option offers a choice among 4 different risk levels (Aggressive, Growth, Index, and Conservative).

Static investment options:

Select among 3 multi-fund portfolios with varying risk tolerances and 20 individual-fund portfolios including a savings account option.

Underlying investments:

American Funds, Federated, State Street, iShares, DFA, Dodge & Cox, MetWest, Tributary, T. Rowe Price, Vanguard, and Goldman Sachs

Underlying fund allocations:

Click here, you need Microsoft Excel to open this document.

Investment performance link:

Click here to visit, link to the program website containing most current performance data.

Portfolio Fees & Performance Lookup

Click here to visit, pricing and performance details for each portfolio. Data can be plugged into FINRA's 529 Expense Analyzer.

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

All portfolios except Age-Based Conservative 19+, Goldman Sachs Financial Square Government Money Market, and Bank Savings option:
0.27% and a state fee of 0.03%, plus distribution fees of 0.25% (Class A) or 1.00% (Class C).

Age-Based Conservative 19+ and Goldman Sachs Financial Square Government Money Market Portfolio:
0.27% and a state fee of 0.03%.

Bank Savings Option:
0.18% and a state fee of 0.02%

Expenses of the underlying investments:

Ranges from 0.07% to 0.257% (portfolio weighted average) in the age-based and static multi-fund portfolios, from 0.0175% to 0.99% in the individual-fund portfolios, none for the Bank Savings option.

Total asset-based expense ratio:

Class A: 0.20% - 1.54%
Class C: 0.20% - 2.29%

Broker loads and commissions:

Class A: Maximum initial sales charge: 4.75%, except none for Age-Based Conservative 19+, Goldman Sachs Financial Square Government Money Market, and Bank Savings Portfolios
Dealer: 4% commission and 0.25% annual trail, except none for Age-Based Conservative 19+ and Goldman Sachs Financial Square Government Money Market Portfolios
Note: Accounts established prior to the 2010 conversion may have a different sales charge schedule.

Class C:
CDSC: 1% within the first 12 months only
Dealer: 1% commission and 1% annual trail beginning in month 13

Breakpoint pricing:

Class A sales load (dealer commission):
Less than $50,000 - 4.75% (4.00%)
$50,000 - $99,999 - 4.00% (3.50%)
$100,000 - $249,999 - 3.50% (3.00%)
$250,000 - $499,999 - 3.00% (2.50%)
$500,000 - $999,999 - 2.00% (1.75%)
$1,000,000 or more - 0.00% (0.00%)

Does breakpoint pricing include non-529 assets under rights of accumulation policies

No

Taxes and other Benefits

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to a Nebraska 529 plan of up to $10,000 per year for single taxpayers and married taxpayers filing jointly, and up to $5,000 per year for married taxpayers filing separately, are deductible in computing Nebraska taxable income. Contributions made by the account owner or parents or guardians of UTMA/UGMA accounts are deductible. Contribution deadline is December 31 postmark.

Value of in-state tax benefits:

Investment time horizon:
18 yrs (i.e. newborn): 0.30% annualized
10 yrs (i.e. 8-yr old): 0.53% annualized
2 yrs (i.e. 16-yr old): 2.68% annualized
Based on 6.84% NE tax rate. (For assumptions see 529 State Tax Calculator.)

State tax recapture provisions:

The principal portion of rollovers and nonqualified withdrawals from this plan are included in Nebraska taxable income to the extent of prior Nebraska tax deductions.

State tax treatment of qualified distributions:

Qualified distributions from Nebraska and non-Nebraska 529 plans are exempt.

State tax treatment of rollovers:

Nebraska follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

Yes, with Upromise. The Upromise rewards service is free and offers cash back for college. Plus, members can earn up to an additional 5% cash back with the Upromise MasterCard®.

Statutory protection of an account from creditors:

Under Nebraska law, an account in a Nebraska 529 plan is not susceptible to any levy, execution, judgment, or other operation of law, garnishment, or other judicial enforcement, and the amount is not an asset or property of either the participant or the beneficiary for purposes of any state insolvency laws.

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

Program Disclosure Statement

Contact

Web site:

Click here to visit

Telephone:

888-659-6378

Plan News

State News

Search our directory of qualified financial professionals to find one near you!

Find a Financial Professional Now Become a Financial Professional
 

Continue to SavingForCollege.com

...in a few seconds you will be forwarded automatically.

close

Advertisement


close