Program Updates
# 1 Rated Direct Sold Plan in the Nation!
Joe Hurley and SavingForCollege.com, recently came out with their performance rankings for the quarter ended March 31, 2008. The College Savings Plan of Nebraska Direct Plan was rated # 1 in their 3 Year Performance Rankings, and the College Savings Plan of Nebraska Advisor Plan was rated #2 in their 1 Year Performance Rankings and #3 in their 3 Year Performance Rankings. This recognition continues the long line of ratings as one of the best plans in the nation. Our ongoing focus is to provide consistently solid returns and investment diversity, all at a great value to the investor. For eight straight years the plan has been recognized by various sources as a national leader.
2007 Tax Information
Joe Hurley’s Savingforcollege.com bestowed the elite 5 cap rating to the Nebraska Plan. The Plan also garnered the highest rating given for non-residents. Savingforcollege.com’s criteria for giving a 5 cap rating includes: This is a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.
Kiplinger’s Personal Finance - the plan makes this exclusive list: “These five plans are TOPS. Best mix of investment choices. For do-it-yourself investors who want to build their own portfolio, the College Savings Plan of Nebraska is a good choice.” (September 2007)
New College Planning Tool – The new College Savings Planner lets you check costs of specific colleges, project future college costs, adjust savings levels, and determine how your current strategy is progressing. Click the image below to get started.
Nebraska Tax Deduction Increases from $1,000 to $5,000
Exciting News! Legislative Bill 338 which increases the Nebraska state income tax deduction for contributions by account owners to Nebraska 529 accounts was signed into law by Governor Heineman May 29th. This is a positive enhancement for Nebraska families and is fitting to occur on “5-29 Day”!
This is exciting news for college savers! The Bill, introduced by Senator Tim Gay and supported by Treasurer Shane Osborn, increases the Nebraska state income tax deduction for contributions to the plan from $1,000 to $5,000 (the increase changes from $500 to $2,500 if married filing separately). These changes will be effective for tax years on or after January 1, 2007.
The passing of the Bill is excellent news for families looking to save more for future college costs. It also means that grandparents looking for that perfect long lasting gift can now save nice sums for their grandchildren while also benefiting from additional tax savings.
Joe Hurley’s SavingForCollege.com -- rates the College Savings Plan of Nebraska (Direct and Advisor plans) 4 ½ caps out of 5. The new rating applies to residents and non-residents. (April 2007)
“Winners List” One of the Top 529 Plans in the Nation
“The College Savings Plan of Nebraska, run by Union Bank and Trust, offers low-cost index funds from Vanguard Group as a core holding in its portfolios while giving investors the flexibility to supplement those funds with reasonably priced, actively managed offerings from American Century, Fidelity Investments, and PIMCO. Offers a diverse mix of reasonably-priced plans to suit various risk tolerances and investment styles.” (Morningstar, Inc. March 2007 as reported in the Wall Street Journal March 1, 2007)
Upcoming Investment Changes
On February 6, 2007, as part of its ongoing monitoring and due diligence with regard to the Plan, the Nebraska Investment Council approved certain changes to the asset allocations of the Age-Based and Target Portfolios and the available Individual Fund Portfolios. The Enrollment Handbook Supplement describes the changes in more detail. These changes are expected to take effect on April 17, 2007. For additional information click here.
Tax Information for 2006
For 2006 tax deduction purposes, page 12 of the 2006 Nebraska Individual Income Tax Booklet provides:
- LINE 52. NEBRASKA COLLEGE SAVINGS PLAN
"Nebraska allows a subtraction from an account owner’s federal adjusted gross income for the amount of annual contributions made to the Nebraska College Savings Plan administered by the State Treasurer who has contracted with Union Bank of Lincoln. The maximum annual exempt contribution per return is $1,000 ($500 married filing separately). You cannot deduct contributions made to other states’ plans on line 52. Only the account owner may claim this deduction."
Your December 31, 2006 end of year statement includes contribution information for 2006.
Please consult with your tax advisor. For tax forms and instructions please visit the Nebraska Department of Revenue web site.
NEW FREE RESOURCE – We have added a new college planning resource for our college savers. Peterson's reaches an estimated 105 million consumers annually with information about colleges and universities, career schools, graduate programs, distance learning, executive training, private secondary schools, summer opportunities, study abroad, financial aid, test preparation, and career exploration. (click here)
Joe Hurley's SavingForCollege.com -- rates the College Savings Plan of Nebraska an elite 4 ½ out of 5 caps for Nebraska residents in their latest rankings (April 2006).
Morningstar -- One of the Top 3 Plans in the Nation. ".the College Savings Plan of Nebraska provides an attractive mix of plans to suit various risk tolerances and investment styles. Investors can choose among four fairly cheap age-based portfolios that vary from conservative to aggressive, or opt for one of 21 different actively managed or index options from fund shops such as American Century, Fidelity, Vanguard, and PIMCO." The plan is also singled out for "below average" costs. (February 2006)
Fund and 529 Portfolio Name Change
The Vanguard Calvert Social Index Fund changed its name to the Vanguard FTSE Social Index Fund and its benchmark to the FTSE4Good US Select Index. Accordingly, references to the Vanguard Calvert Social Index Fund throughout the Enrollment Handbook are replaced with "Vanguard FTSE Social Index Fund." In addition, the name of the "Vanguard Calvert Social Index 529 Portfolio" is hereby changed to the "Vanguard FTSE Social Index 529 Portfolio."
Tax Information for 2005
For 2005 tax deduction purposes, page 14 of the 2005 Nebraska Individual Income Tax Booklet provides: "LINE 51. NEBRASKA COLLEGE SAVINGS PLAN. Nebraska allows a subtraction from an account owner's federal adjusted gross income for the amount of annual contributions made to the Nebraska College Savings Plan administered by the State Treasurer who has contracted with Union Bank of Lincoln. The maximum annual exempt contribution per return is $1,000 ($500 married filing separately). You cannot deduct contributions made to other states' plans on line 51. Only the account owner may claim this deduction.
For a copy of the 2005 Nebraska Individual Income Tax Booklet click here.
MSN Money
"One of the Top 5 Plans in the Nation." One of five plans singled out for keeping costs under control while turning in better-than-average performance in the past few years. Low cost, investment performance and investment diversity. (October 31, 2005) Read Full Article Here
Plan Investment Change
Effective June 17th, 2005 the Plan replaced the T. Rowe Price Institutional Foreign Equity Fund with the Vanguard Total International Stock Index Fund. No action was required by investors.
Important Investment Change
The Plan is adding a new investment fund effective February 8, 2005. The Goldman Sachs Real Estate Securities Fund is being added to the targeted investment allocations for the Age-Based Portfolios and Target Portfolios and the Goldman Sachs Real Estate Securities 529 Portfolio will be added to the Individual Fund Portfolios the Plan offers. For more info...
Tax Information for 2004
For 2004 tax deduction purposes, page 14 of the 2004 Nebraska Individual Income Tax Booklet provides: "LINE 51. NEBRASKA COLLEGE SAVINGS PLAN. Nebraska allows a subtraction from an account owner's federal adjusted gross income for the amount of annual contributions made to the Nebraska College Savings Plan administered by the State Treasurer who has contracted with Union Bank of Lincoln. The maximum annual exempt contribution per return is $1,000 ($500 married filing separately). You cannot deduct contributions made to other states' plans on line 51. Only the account owner may claim this deduction.
Morningstar
"Five 529 Plans with Stellar Investment Options", College Savings Plan of Nebraska included on elite list (May 14, 2004)
Bloomberg News
"Who Offers the Best 529 College Savings Plans?" Easiest route to the best 529 deal? College Savings Plan of Nebraska (direct-sold) listed as one of the top 529 plans (March 1, 2004)
Tax Information for 2003
If you file a Nebraska State Income Tax Return, keep in mind you may be eligible for up to a $1,000 State Income Tax deduction ($500 if married filing separately). This subtraction from federal adjusted gross income is reported on Line 51 on your Form 1040N. We suggest you review the 2003 Nebraska Individual Income Tax Booklet and also consult with your tax advisor regarding the proper tax reporting. For other entities (ie: corporations, trusts, etc.) that have a College Savings Plan of Nebraska account consult with your tax advisor for the proper tax reporting.
Plan Investment Change
Effective December 15th the Plan replaced the Janus Enterprise Fund with the Vanguard Mid-Cap Index Fund. No action was required by investors. More Info...
Enhanced Employer Section of Site
Employers are finding the College Savings Plan of Nebraska an easy way to offer additional benefits or services to their employee's. Check out how you can offer the Plan to your employee's.
Gift Cards
Please contact us if you would like a gift card to send to your loved one (good for Christmas, Birthdays, Graduation and other holidays and events). Please call and let us know how many you would like. 1-888-993-3746.
College Funding Planner
Visit the College Funding Planner which estimates future college costs and required monthly savings.
The New York Times
Top Performers section, College Savings Plan of Nebraska has 3 of the 12 listed best-performing portfolios of all state 529 college savings plans portfolios in the Fixed Income, Age-Based for a 5-year old beneficiary, and Equity categories for the 12 months through March 31, 2003 (Sunday, May 25, 2003)
Joe Hurley's SavingForCollege.com "The Hurley Report"
The "100 / 100 Club" -- fastest growing 529 savings programs in 2002, representing all programs with over $100 million in assets and at least a 100% increase in assets -- College Savings Plan of Nebraska listed in top 3 with a 287% increase. (February 2003)
SmartMoney Magazine
One of the Top 3 Plans in the Country (November 2002)
Online Enrollment
To simplify the investing process, the College Savings Plan of Nebraska has added online enrollment. This enhancement has been favorably received since its roll out in September 2002. Investors enjoy the simplicity and ease of enrolling in the Plan. To enroll online, click here.
Lower Account Fee
The College Savings Plan of Nebraska continues to strive to provide college savers with a quality savings vehicle at a very competitive cost. The Nebraska Plan is pleased to announce that the $6 quarterly account fee has been reduced to $5 per quarter.
Expanded Investment Menu and Information
To provide investors and college savers additional investment flexibility and choice, the College Savings Plan of Nebraska has added 22 Individual Fund Portfolios. This addition in September 2002 is designed to provide additional flexibility to the college saver.
College savers can now select from 4 Age-Based Tracks (Conservative, Balanced, Growth or Aggressive), 6 Target Portfolios, or 22 Individual Fund Portfolios. For additional information on the investment alternatives available, click here.
In our efforts to continue to provide college savers expanded information, we have greatly expanded the investment information on our web site.
The expanded information includes prospectus, fact sheets and annual reports on the underlying mutual funds. Also included is additional information on the various Portfolios. To explore this expanded information, visit the Investments section of the site.
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