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State Farm College Savings Plan

Nebraska's State Farm College Savings Plan utilizes Vanguard, State Street, DFA and iShares funds in its age-based and static portfolios. First National Bank serves as program manager and assumed responsibilities as plan distributor from Oppenheimer and OFI in August of 2018. To find a financial advisor in your area, use the Directory of Financial Professionals.

Our Ratingx

3.5 of 5

Fee Scorex

4.5 of 5

Performancex

N/A

  • Program typeSavings
  • Inception2003
  • State agency
    Nebraska State Treasurer
  • 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 Capital Markets, Inc.
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for NE residents

This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

Our overall rating for non-residents

This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

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.


1.13of 5

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?

Individuals of legal age, UGMA/UTMA custodians, trusts, state/local governments and 501(c)(3) organizations.

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 $400,000.

Minimum contributions:

With lump-sum contributions, the minimum initial contribution is $250 per account, and the minimum subsequent contribution is $50 per portfolio. With the automatic investment plan, the minimum contribution level is $50 per portfolio.

Investment Options

Age-based investment options:

The Age-Based option contains 9 portfolios. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.View more age-based investment options

Static investment options:

Select among 7 portfolios: All Equity, Growth, Moderate Growth, Balanced, Conservative, Money Market and Bank Savings.View more static investment options

Underlying investments:

Vanguard, State Street, DFA, iShares funds, and Goldman Sachs Government Money Market fund. The Bank Savings option invests in an FDIC-insured savings account.View 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, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

$25, waived for accounts with a balance exceeding $20,000.

Program management fees:

0.27% (including 0.02% state fee) plus distribution fees of 0.25%; 0.27% (including 0.02% state fee) for the Money Market; 0.20% (including 0.02% state fee) for the Bank Savings options.

Expenses of the underlying investments:

Ranges from 0.05% to 0.09% (portfolio weighted average) in the age-based options, from 0.05% to 0.18% in the static portfolios, none for the Bank Savings option.

Total asset-based expense ratio:

Class A: 0.45% - 0.61%
Bank Savings option: 0.20%

Broker loads and commissions:

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Breakpoint pricing:

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

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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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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:

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Contact

Website:

http://www.statefarm.com/mutual/acct_types/529.asp

Telephone:

1-800-321-7520

Telephone for broker use:

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