Nebraska families who welcomed new additions in 2024 will receive a financial head start thanks to the Meadowlark Savings Pledge. This spring, a one-time $50 seed contribution will be distributed into a state-managed NEST 529 account for every Nebraska child born in 2024, as directed by the Meadowlark Act.
The State Treasurer’s office said via release that families will get a letter stating their qualification for the pledge, which is designed to help children and families start saving for higher education. After the starter contribution grows over time, students can use the fund toward qualified expenses for education after high school. Funds can be used for technical, trade, and vocational schools in addition to Nebraska colleges and universities.
No extra costs or paperwork are required by families for the automatic enrollment, which has been received by Nebraska babies born on or after January 1, 2020.
The release continued by explaining the benefits a Nest 529 Education Savings account offers that other traditional savings methods do not, including:
- 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 investment selections.
- Tax Benefits – Tax-advantaged savings include a Nebraska state tax deduction, tax-deferred growth, and tax-free qualified withdrawals.1 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.2
- 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.
