(KFOR NEWS September 7, 2022) Governor Pete Ricketts is calling attention to the importance of saving for a loved one’s future education by issuing a proclamation declaring September as College Savings Month. With this proclamation, parents and guardians are reminded of the importance of saving, even in times of economic uncertainty.
“As parents, we want to provide our children with every opportunity to achieve their dreams,” said Gov. Ricketts. “By contributing to a NEST 529 College Savings Plan, families can invest in a child’s postsecondary education and benefit from the plan’s tax advantages. I’m declaring September as College Savings Month in Nebraska to highlight the importance of saving for our kids’ futures.”
Many higher education costs, like books, laptops, and institution fees need to be considered along with tuition and room and board. Scholarships and grants can help cover some of those expenses, but with costs rising above the rate of inflation on average, more funds may be needed. According to the non-profit, College Board, in 2021-22, the average costs of higher education tuition and fees for a full-time student are as follows:
- Public two year: $3,800
- Public four year in-state: $10,740
- Public four year out-of-state: $27,560
- Private nonprofit four year: $38,070
A NEST 529 Plan is a tax-advantaged account for higher education expenses. NEST 529 College Savings Plans can be used for everything from four-year universities to two-year technical schools. Opening a NEST 529 account doesn’t require a minimum deposit to get started, and contributions can be managed online. Account Owners in Nebraska may be eligible for an annual state income tax deduction of up to $10,000 for NEST 529 contributions or $5,000 if married filing separately. Plus, any earnings grow tax-free, and qualified withdrawals may be free from federal and state income tax.3
“By declaring September as College Savings Month, we hope that parents and guardians will take this opportunity to sit down with their loved ones to discuss how a 529 college savings plan can help them reach their education goals,” said Nebraska State Treasurer John Murante.
Parents and Guardians may not know what their child’s future has in store, but a little planning today goes a long way toward their success. Plans allow families to start investing in their child’s future so they can soar toward their goals. Visit NEST529.com to read more about the benefits of a NEST 529 College Savings Plan.
The Nebraska State Treasurer serves as the Program Trustee. All investments, including the portfolio structure offered through the NEST 529 program, are vetted and approved by the Nebraska Investment Council.
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