How you can set them up to soar.

If you don’t know where to start or just need a refresher on 529 plans, we’ve got you covered. Learn the basics of 529 college savings plans right here, so you can be prepared to help your child succeed.

What is a 529 plan?

A 529 college savings plan is a tax-advantaged account for education expenses, and is generally state sponsored. Its name stems from Section 529 of the IRS tax code, which gives these plans special tax breaks to encourage saving for education.12

Understanding 529 Plans

You may have questions before you invest, and that’s okay. Let NEST help you find the answers you’re looking for.

529 plans make great college savings options.

There are several tax savings benefits that can be received by opening a 529 college savings account. Any earnings grow tax-free and qualified withdrawals may be free from federal and state income tax.2 Learn how you can receive NEST tax benefits.

What’s a beneficiary?

A beneficiary is the person for whom a 529 account is opened. An account can be opened for a child, grandchild, friend, or even yourself. The beneficiary must be a U.S. citizen or resident alien with a valid Social Security number or other taxpayer identification number.

What happens if the beneficiary doesn’t want to continue his or her education?

There are several options if this occurs:

  1. Leave the funds in the account in the event your beneficiary (or another member of the family) goes back to school at a later date.
  2. You can change the beneficiary to another member of the family for their college expenses.
  3. You can withdraw the funds as a non-qualified withdrawal. The earnings portion (not the amount you contributed) is subject to federal and state income taxes, a 10% federal penalty tax, and subject to recapture of any Nebraska state tax deductions previously taken.

529 plans are easy to set up and easy to use.

Accounts can be opened by almost anyone, there are no income limits, and anyone can contribute. You can use a 529 account to pay for qualified higher education expenses at most colleges and universities, and also at many technical, trade, vocational, and career schools. See how NEST can help you save for college.

You don’t need to be a financial expert to start investing.

529 plans provide options for every level of investor. Before you start investing, review your Investment Options and consider the investment objectives, risks, and expenses. Interested in investing with NEST? Read the NEST Program Disclosure Statement to learn more on investing and other important information, and visit our Investment Options page.

NEST Features

Opening a 529 account with NEST means you’ll enjoy quality Investment Options with no minimum deposit or ongoing contribution requirements. Plus, your account can be managed simply and securely online, whenever and wherever you want.

Learn More about NEST Features

Tax Benefits

Nebraska account owners are offered attractive tax benefits for investing in NEST, including up to an annual $10,000 state income tax deduction.2 Out-of-state account owners may also be eligible for tax benefits depending on their state tax laws.

Learn More about Tax Benefits

College Costs

As education costs rise, it’s important to have a savings plan set up as early as possible. Learn how much you’ll need and when to start saving so you’re prepared to meet your savings goals.

Learn More about College Costs

College Savings Calculator

Create your own college savings report based on your family’s situation. Input your information and you’ll see the total projected cost and estimated monthly savings amount you’ll need to get there.

Calculate Your Savings about College Savings Calculator

Choose the best way to invest.

Find the Investment Option that best fits your needs, risk tolerance, and comfort level. You have options to fit your risk tolerance, time frame, savings goals, and flexibility to change your Investment Options twice a year.

Learn More Learn More about Investment Options