![]() An investor should consider, before investing, whether the investor’s or beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan. Each of the Investment Options involves investment risks, which are described in the Program Disclosure Statement. ![]() You can lose money by investing in an Investment Option. This and other important information is contained in the fund prospectuses and the NEST Direct College Savings Plan Program Disclosure Statement (issuer’s official statement), which should be read carefully before investing. ![]() backĪn investor should consider the investment objectives, risks, and charges and expenses associated with municipal fund securities before investing. If the donor dies before the end of the five-year period, the portion of the contribution allocable to years after the donor’s death will be includible in the donor’s estate for federal estate tax purposes. Please consult with your tax or legal professional. A Federal Gift Tax Return (Form 709) is required to be filed. As a result a donor may make a contribution to a beneficiary’s account of up to $85,000 (or up to twice that much if the donor and his or her spouse elect to “split” gifts) without any negative gift tax consequences, so long as the donor does not make any additional contributions to the account (or any other gifts to the account beneficiary) during that tax year or any of the succeeding four calendar years. backģ A donor may elect to treat a contribution to a beneficiary’s account as made ratably over a five-year period. In the case of a UGMA/UTMA 529 account, contributions by the parent/ guardian listed as the Custodian on the UGMA/UTMA Plan account are also eligible for a Nebraska state tax deduction. The minor must file a Nebraska tax return for the year their contributions are made to be eligible for a tax deduction for their own contributions. ![]() For a minor-owned or UGMA/UTMA 529 account, the minor is considered the account owner for Nebraska state income tax deduction purposes. Contributions in excess of $10,000 cannot be carried over to a future year. Please consult your tax professional about your particular situation.Ģ Account owners may deduct for Nebraska income tax purposes contributions they make to their own account (and any other accounts they own in the Nebraska Educational Savings Plan Trust) up to an overall maximum of $10,000 ($5,000 if married, filing separately). If a withdrawal is made for such purposes, although it is a Federal Qualified Withdrawal, it will be treated as a Nebraska Non-Qualified Withdrawal and may result in the recapture of a previously claimed Nebraska state income tax deduction, and the earnings portion will be subject to Nebraska state income tax. ![]() Nebraska law does not treat the following Federal Qualified Higher Education Expenses as Nebraska Qualified Expenses: K–12 Tuition Expenses. However, earnings on all other types of withdrawals are generally subject to federal and Nebraska state income taxes, and an additional 10% federal tax. Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance certain room and board expenses incurred by students who are enrolled at least half-time the purchase of computer or peripheral equipment, computer software, or Internet access and related services, if used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution certain expenses for special needs services needed by a special needs beneficiary apprenticeship program expenses and payment of principal or interest on any qualified education loan of the Beneficiary or a sibling of the Beneficiary (up to an aggregate lifetime limit of $10,000 per individual). 1 Withdrawals used to pay for qualified higher education expenses are free from federal and Nebraska state income tax. ![]()
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