LINCOLN–(News Release Apr. 11)–Each child born in Nebraska in 2022 will receive a one-time $50 seed contribution, as directed by the Meadowlark Act.
Families of eligible babies will receive a letter from the State Treasurer announcing their qualification for the Meadowlark Savings Pledge. When it’s time to continue their education after high school, students can use the contribution toward education expenses. In addition to Nebraska colleges and universities, funds can be used for technical, trade, and vocational schools.
Established in 2020, the Meadowlark Program was designed to help Nebraska families get a head start on future educational expenses. Eligible Nebraska babies born in 2020, 2021, or 2022 are eligible to receive this one-time Meadowlark seed contribution. It is an automatic enrollment that does not require families to pay extra costs or complete any time-consuming paperwork.
College tuition and costs continue to increase at, and above, the rate of inflation. From 2010 to 2021, average in-state tuition and fees at public four-year colleges increased by 10 percent, according to the National Center for Education Statistics.1
For those families who welcomed a baby in 2022, the Meadowlark Program is the beginning of their child’s educational savings journey, setting them up to soar. It is important for families to start saving sooner rather than later, and Meadowlark, combined with a NEST 529 account, is an easy way to help loved ones take flight toward their dreams.
NEST 529 College Saving Plan
Meadowlark is an important beginning on your savings path. But, families should open their own NEST 529 account to start building for their children’s futures today. A NEST 529 account gives families the ability to make routine contributions that can be put to work helping a child achieve their aspirations.
Key features include:
- Flexibility—A NEST 529 account can be opened in just 10 minutes. Families can manage everything easily online, from contributing and reallocating funds to making their investment selections.
- Tax Benefits—Tax-advantaged savings include a Nebraska state tax deduction, tax-deferred growth, and tax-free qualified withdrawals.2 Account Owners in Nebraska are eligible for an annual state income tax deduction of up to $10,000 for NEST 529 contributions or $5,000 if married filing separately.3
- Investment Options—Families can customize their investment portfolio to fit risk tolerance, time frame, and savings goals. Saving is made even easier with automatic contributions from bank accounts or paychecks.
- Diverse Fund Families—NEST offers quality funds from multiple fund families including Vanguard, T. Rowe Price, and others.
The State Treasurer serves as the Program Trustee. All investments, including the portfolio structure offered through the NEST 529 Plan, are vetted and approved by the Nebraska Investment Council.