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Nebraska Education Savings Trust -- Direct College Savings Plan logo

Nebraska Education Savings Trust -- Direct College Savings Plan

Nebraska Education Savings Trust -- Direct 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.

Our Ratingx

4.5 of 5

Fee Scorex

4 of 5

Performancex

4 of 5

  • Program typeSavings
  • Inception2001, but substantially changed December 2010
  • State agency
    Nebraska State Treasurer and Nebraska Investment Council
  • Tax deduction
    Tax deduction for single filers $10,000/yr
    Tax deduction for joint filers $10,000/yr
  • Program Manager
    First National Bank of Omaha
  • Program distributor
    First National Bank of Omaha
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for NE residents

This is a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.

Our overall rating for non-residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

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.


4.32of 5
top-ten

Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.

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

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.

Nebraska Education Savings Trust -- Direct College Savings Plan logo

Contributions

Maximum contributions:

Accepts contributions until all account balances in Nebraska's 529 plans for the same beneficiary reach $400,000.

Minimum contributions:

No minimum.

Investment Options

Age-based investment options:

The Age-Based Portfolios option offers a choice among 3 different risk levels (Aggressive, Growth, and Index).View more age-based investment options

Static investment options:

Select among 6 static options (All Equity, Growth, Moderate Growth, Balanced, Conservative and Bank Savings), and 15 individual-fund portfolios including a money market option.View more static investment options

Underlying investments:

State Street, DFA, MetWest, Tributary, T. Rowe Price, iShares, Vanguard, Goldman SachsView a full list of this plan's investment options

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None

Program management fees:

0.25% manager fee and a 0.02% fee to the state; 0.18% manager fee and 0.02% state fee for the Bank Savings option.

Expenses of the underlying investments:

Ranges from 0.05% to 0.18% (portfolio weighted average) in the age-based and static multi-fund portfolios, and from 0.0175% to 0.99% in the individual-fund portfolios. None for the Bank Savings option.

Total asset-based expense ratio:

0.20% - 1.26%

Taxes and other Benefits

  • Tax deduction for single filers$10,000/yr
  • Tax deduction for joint filers$10,000/yr

Example

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 an account owner who files a Nebraska state income tax return, including the principal and earnings portions of rollovers from another qualified college savings plan not issued by the State of Nebraska, are deductible in computing the account owner's Nebraska taxable income for Nebraska income tax purposes in an amount not to exceed $10,000 ($5,000 for married taxpayers filing separate returns) in the aggregate for all contributions to all accounts within the Trust in any taxable year. Contributions by a custodian of an UGMA or UTMA account who is also the parent or guardian of the Beneficiary of an UGMA or UTMA account may claim this deduction. Contribution deadline is December 31 postmark.

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, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:

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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.

Nebraska Education Savings Trust -- Direct College Savings Plan logo

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?

Yes

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

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Contact

Telephone:

888-993-3746

Facebook

https://www.facebook.com/NEST529CollegeSavings/

Start saving for your child's future today


Step 1

Click the blue Enroll Now button to the right

Step 2

Complete the online application and make your first deposit

Nebraska Education Savings Trust -- Direct College Savings Plan logo