College savings plans offered by Nebraska are getting high marks for their performance.
The website Savingforcollege.com reports the NEST 529 Advisor Plan’s three-year performance is the top ranked in the country.
State Treasurer Don Stenberg says that plan’s five-year and one-year performance also landed in the top ten nationally.
“We’ve also had very good results with NEST Direct,” Stenberg tells Nebraska Radio Network. “Savingforcollege.com ranked the NEST Direct Plan for three-year performance 5th in the country, so that’s a very good plan as well.”
Stenberg says, along with the Advisor and Direct plans, the state offers The TD Ameritrade, and The State Farm college savings plans.
From January through November, more than 18,000 new accounts have been opened.
“Not only do we have a lot of Nebraska investors – about 79,000 Nebraskans have invested in the plan – nationwide we have 254,000 accounts,” he explains. “People from other states who have chosen the Nebraska NEST Plan over their home state plan.”
The Treasurer’s Office reports the total assets in NEST reached $4.8 billion this year.
Stenberg says contributing to a NEST 529 plan is a good gift idea.
“It’s a great Christmas present for a grandparent to contribute to an account or set up their own account for their grandkids,” he says. “My wife and I have set up a college savings account for each of our 12 grandchildren.”
All of the state’s 529 plans allow for tax-free withdrawals to cover education-related expenses.
Contributions up to $10,000 can be deducted from a Nebraska resident’s adjusted gross income.
AUDIO: Mike Loizzo reports [:33]