Contributions to Your Account.
How much can I put in the account?
Are annual contributions required?
How much do I need to save?
How are contributions made?
Can I change my contribution amount?
How will my contributions grow?
Can I put my own stocks, bonds or property in my account?
Can I contribute to a Coverdell Education Savings Account (formerly known as an Education IRA) and also contribute to the College Savings Plan of Nebraska?
Can I transfer assets from an UGMA/UTMA custodial account or another 529 program?
How much can I put in the account?
For Federal gift tax purposes, Contributions to an Account are considered a gift from the contributor to the Beneficiary that is eligible for the annual gift tax exclusion. For 2008, the annual exclusion is $12,000 per donee. This means that you may contribute up to $12,000 to an Account without the Contribution being considered a taxable gift (assuming you make no other gifts to the Beneficiary in the same year). In addition, if your total Contributions to an Account during a year exceed the annual exclusion for that year, you may elect to have the amount you contributed that year treated as though you made one-fifth of the Contribution that year, and one fifth of the Contribution in each of the next four years. (Such an election must be made on a Federal gift tax return). This means that you may contribute up to $60,000 to an Account in 2008 without the Contribution being considered a taxable gift (assuming you make no other gifts to the Beneficiary in the same year or in any of the
succeeding four years).
Moreover, a married contributor whose spouse elects on a Federal gift tax return to have gifts treated as "split" with the contributor may contribute up to twice that amount ($120,000) without the Contribution being considered a taxable gift. The annual exclusion is indexed for inflation and therefore is expected to increase over time.
You may not make additional Contributions to the Plan once the aggregate amount of Contributions to the Trust for a Beneficiary equals $360,000 or the value of all Accounts in the Trust for the same Beneficiary reaches $360,000.
Are annual contributions required?
No, you are not required to contribute each year.
How much do I need to save?
You can calculate your own savings plan and the expected future costs of a college education under Cost Calculator.
How are contributions made?
There are several ways to contribute to your account:
- By check (deposit coupon)
- Money Order
- Payroll deduction (check with employer for availability)
- Electronic funds transfer
- Automatic investment plan
- Rollover from another 529 qualified tuition program
- Bank Wire
- Bank Name - Union Bank & Trust Company
- Routing Number - 104910795
- Beneficiary Name - College Savings Plan of Nebraska
- Beneficiary Address - 6811 South 27th Street Lincoln, NE 68512
- Beneficiary Account # - 3480106 (For Further Credit to:
Account Name: _____________________________
Account #: _____________________________
Forms for automatic withdrawal, rollovers and payroll deduction are available at this site.
Can I change my contribution amount?
Yes, you may increase or decrease the amount of contributions at any time. To make a change please complete and return the Payroll Deduction or Automatic Deduction Form. These forms can also be requested by calling the College Savings Plan of Nebraska at 1-888-993-3746.
How will my contributions grow?
Your investment will grow based on the performance of the Portfolio you choose. Each Portfolio carries differing degrees of risk and return potential. Please see the Investment section and Enrollment Handbook for additional information on the Portfolios in the Plan. Call 1-888-993-3746 if you have questions.
Can I put my own stocks, bonds, or property into my account?
No. Federal law requires that all investments be made in cash or cash equivalents (i.e. check, money order, cashiers check).
Can I contribute to a Coverdell Education Savings Account (formerly known as an Education IRA) and also contribute to the College Savings Plan of Nebraska?
Yes, you can contribute to both. For additional information, please feel free to contact us 1-888-993-3746; contact your tax or investment professional; and for a good resource, check out IRS Publication 970.
Can I transfer assets from an UGMA/UTMA custodial account or another 529 program?
If you have established a custodial account for a child under the Uniform Gift/Transfer to Minors Act (UGMA/UTMA), the account must first be liquidated. (Note: This may result in a taxable transaction.) When the College Savings Plan of Nebraska account is established the child named to the UGMA/UTMA must be the beneficiary. The custodian from the UGTMA/UTMA account will be the account owner until the beneficiary reaches the appropriate legal age of majority under the applicable UGMA/UTMA statute at which time the beneficiary will become the account owner.
You can roll over assets from another 529 program at any time. A same beneficiary rollover/transfer is allowed once in a 12-month period. Additional transfers are allowed but require a change of beneficiary. You will need to complete and submit the Rollover Form with your enrollment form.
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