In May, Nebraska Governor Dave Heineman signed a new law into effect that will give people with NEST 529 College Savings Plans a larger state income tax deduction for contributions into their accounts.
Deborah Goodkin, Program Manager for Nebraska’s 529 College Savings Plans, says customers can open accounts with after tax dollars.
She says their earnings grow tax deferred while in the account and tax free when used for qualified higher education expenses.
Goodkin says most people sign up online for accounts, a process that takes about 10 minutes.
Goodkin explains the funds can be used for all types of post-secondary education.
"You can use it for colleges anywhere in the United States and some abroad, community colleges, 4-year colleges, 2-year colleges, and technical schools. We have people going to beauty and cooking schools using these accounts. It’s also easy to take withdrawals to pay for these colleges. That can be done online as well.”
Goodkin says the NEST plan is named 529 after the section of the IRS code that established the tax advantages.