Tax Advantaged College Savings Plans

Before you know it, your children or grandchildren will be ready for college—and the cost of education keeps getting higher and higher. “Families need help saving for college now more than ever before,” said State Treasurer David Heineman. “The future arrives every morning and Nebraska must begin providing parents an easy, tax advantaged means to save for their children’s college education. A college graduate will earn nearly twice as much during his lifetime as his high school graduate counter-part.” The College Savings Plan of Nebraska is a new plan that makes saving for college simple and affordable. Parents, grandparents, or anyone interested in helping secure a child’s dream of a higher education can now open an account. The plan offers tax-savings advantages, applies to schools nationwide, and provides a variety of investment options.

Planning For Your Child’s Future

Tax Advantages. Participating in the program qualifies you for a Nebraska income tax deduction of up to $1,000 for contributions to the plan. Earnings grow tax-deferred—and qualified withdrawals are exempt from Nebraska State tax and federally taxed at the child’s rate.

Affordability. You can begin investing with as little as $25 a month or $300 per year. Contributions may be made for as much as $50,000† per year without triggering federal gift taxes. Contributions. You may contribute to your account in several ways: by check, automatic deduction from your checking or savings account, or payroll deduction (check with your employer for availability).

Flexibility. If your child decides not to attend college, the beneficiary may be changed to another family member.

Options. Your money is invested in brand-name funds you know and trust, including Vanguard, Fidelity, Janus, American Century, and PIMCO. † $50,000 counts as 5 years of gift money. You also have the option of giving up to $10,000 per calendar year. The comparison chart on the next page demonstrates the many benefits of the college savings plan.

How The Plan Works
The College Savings Plan allows you to use your investments at schools nationwide—including private or public colleges, universities, community colleges, occupational schools, trade schools, and graduate programs. Qualified expenses include tuition and fees—as well as books, supplies, room and board, and other educational expenses. With no residency requirements or income restrictions, anyone is eligible to open an account.

After completing a national competitive bid process, the Nebraska State Treasurer selected Union Bank to administer the plan. State Treasurer David Heineman said, “I truly believe that Union Bank and my office will have one of the fastest growing college savings plans nationwide. I have worked with Union Bank during the last few months to ensure that our Nebraska College Savings Plan is one of the lowest cost plans in the nation. Additionally, Nebraska’s plan is one of only fourteen states that provides for a state income tax deduction and our plan covers a broad range of qualified college expenses.”

Growing Your Investments.
It’s never too early to start planning for your child’s future. Investing early ensures your money will have time to grow. When you open a College Savings Plan account, you have a wide variety of investment choices—including four age-based portfolios and seven target portfolios.

For more information about the College Savings Plan of Nebraska or to receive an enrollment kit, contact us toll-free at 1-888-993-3746, visit www.PlanForCollegeNow.com, or e-mail collegesavings@ubt.com.

*Investment services offered through Union Bank & Trust Company’s Trust Division.
Investment products: Not FDIC Insured - No Bank Guarantee - May Lose Value.