General InformationDownload PDF Report
Enable Savings Plan
The Enable Savings Plan is issued by The Nebraska Achieving a Better Life Experience Program Trust and administered by the Nebraska State Treasurer, who serves as trustee to the Plan. The Plan offers a series of investment options within the Nebraska Achieving a Better Life Experience Program Trust. The Plan is intended to operate as a qualified ABLE program, pursuant to Internal Revenue Code Section529A.
- Program typeABLE Savings plan
- Investment ManagerNebraska Investment Council
- State agencyNebraska State Treasurer
- Tax deduction
- Program ManagerFirst National Bank of Omaha
- Program distributorFirst National Capital Markets
- Manager contract termUNLOCK PRO
State residency requirements:No
Who can be a participant/owner in the program?An account may be opened by an eligible individual under section 529A or an authorized individual with valid power of attorney or the eligible individual's legal guardian or conservator.
Program restrictions:To be eligible for an ABLE savings plan, an individual must have been diagnosed with a disability before age 26, and be eligible to receive benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI). Individuals who are not receiving SSI and/or SSDI may still be eligible if they meet the age requirement and have been diagnosed by a licensed physician and received a letter of certification.
Did you know?
NE residents can claim a tax deduction for contributions to a NE 529 plan.
Contributions are deductible in computing state taxable income
529 plan contributions grow tax-free.
Withdrawals are tax-free when used to pay for qualified higher education expenses.
You can contribute as much as you want, as often as you want.
The key is to get started. Enroll today by completing a quick form online.
Maximum contributions:Annual contribution limit is currently $15,000 from all sources. If the beneficiary works, the beneficiary can also contribute part, or all, of their income to their ABLE account. This additional contribution is limited to the poverty-line amount for a one-person household. For 2018, this amount is $12,140. The designated beneficiary is not, however, eligible to make this additional contribution if their employer contributes to a workplace retirement plan on their behalf.
ABLE account beneficiaries can qualify for the Saver's Credit based on contributions they make to their ABLE accounts. Up to $2,000 of these contributions may qualify for this special credit designed to help low- and moderate-income workers.
No additional contributions may be made for the benefit of an account owner when the fair market value of the account exceeds $400,000. If, however, the market value of such accounts falls below the account balance limit, additional contributions will be accepted.
Minimum contributions:The minimum initial contribution amount is $50 per account unless the account owner signs up for AIP or payroll deduction of at least $25 per month. The minimum subsequent contribution amount is $25, but is waived if the account owner is signed up for AIP or payroll deduction.
Target-Risk Options:Select among 3 investment options: Growth, Moderate, and Conservative
Bank Money Market Investment / Checking Option:A savings account insured by the FDIC and is held at First National Bank of Omaha.
Fees & Expenses
Enrollment or application fee:None
Account maintenance fee:$45 annually, assessed at $11.25 per quarter
Expenses of the underlying investments:Ranges from 0.05% to 0.06%, depending on the selected investment option. The checking option has no asset-based fees.
Total asset-based expense ratio:0.50% - 0.56%, depending on the investment option chosen
Fees or restrictions on the number of disbursementsContributions may not be withdrawn from an account for five business days after deposit.
Taxes and other Benefits
- Tax deduction for single filers$10,000/yr
- Tax deduction for joint filers$10,000/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
Program match on contributions:None
State tax deduction or credit for contributions:Contributions by anyone who files a Nebraska state income tax return are eligible to receive a Nebraska state income tax deduction for their own contributions of up to $10,000 ($5,000 if married, filing separately).
State tax recapture provisions:Nebraska state law currently provides for the partial recapture of the Nebraska state income tax deduction when a non-qualified withdrawal is made. Additionally, to the extent that a distribution constitutes a non-qualified withdrawal, the Nebraska Department of Revenue will subject the distribution to partial recapture of the Nebraska state income tax deduction claimed in prior years. In general, a contributor who claimed a Nebraska state income tax deduction in prior years must increase his or her Nebraska taxable income by the amount of the non-qualified withdrawal, but only to the extent previously deducted.
State tax treatment of qualified distributions:If a qualified withdrawal is made from an account, no portion of the distribution may be included in the gross income of the account owner.
State tax treatment of rollovers:Nebraska follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period.
Medicaid eligibilityThe ABLE Act is designed to ensure that the value of any and all assets purchased using funds from an ABLE account that are qualified disability expenses will not count for purposes of determining eligibility for Medicaid, and that once an asset is purchased it will not be subject to further review. The CMS guidance can be found at Implications of the ABLE Act for State Medicaid Programs on the CMS website. Please consult with your state's Medicaid office with any additional questions.
Medicaid recapture provisionsUpon the death of the account owner, Code Section 529A permits a state to file a claim for the amount of the total medical assistance paid for the account owner under the state's Medicaid plan after the establishment of the account (or any ABLE account from which amounts were rolled or transferred to the account). The amount of the claim is to be paid only after the payment of all outstanding payments due for the qualified disability expenses of the account owner and is to be reduced by the amount of all premiums paid by or on behalf of the account owner to a Medicaid Buy-In program under that state's Medicaid plan.
Is there a debit card/ purchasing card available, and if so, at what cost?Yes, a Debit MasterCard is available.
Statutory protection of an account from creditors:UNLOCK PRO
Did you know?
Residents are not limited to investing in their own state's 529 plan.
Another state may offer a plan that performs better and has lower fees.
The 529 plan chosen does not affect which state the student enrolls in.
You can live in New York, open a plan from Nevada and send a student to college in Florida.
The best way to maximize your college savings?
Start early and save often. You can get started today with easy online enrollment.