Gov. Dave Heineman encouraged families to begin saving for their children’s higher education through the Nebraska Educational Savings Trust in a proclamation issued Wednesday celebrating September as College Savings Month in Nebraska.
“With schools back in session and college students returning to campuses across Nebraska and the nation, September is an ideal time for the Treasurer’s Office to promote the Nebraska Educational Savings Trust, the state-sponsored 529 college savings program,” said State Treasurer Don Stenberg. State-sponsored 529 programs take their name from Section 529 of the U.S. Internal Revenue Code.
A 529 plan is a tax-advantaged investment plan designed to encourage saving for future higher education expenses of a designated beneficiary. Withdrawals from 529 plans for qualified education expenses, including tuition, books and some board and room expenses, are free from federal and state income tax.
In Nebraska’s program, account holders who are Nebraska taxpayers are eligible for up to $5,000 a year in state tax deductions. Assets in the accounts can be used at four-year colleges and universities, community colleges, technical schools and graduate schools in the United States and in some other countries.
More than 206,000 families nationwide, including 58,000 families from Nebraska, are saving for their children's higher education through NEST. For more information, visit nest529.com.