Provides holiday gift idea and tax saving updates for account owners before the end of 2023
The Nebraska State Treasurer wants to remind families seeking holiday gift ideas to consider giving a financial contribution to a loved one’s NEST 529 Education Savings Plan. A gift of any amount to an education savings account has the potential to grow into a bigger gift in the future.
“A holiday gift doesn’t need to be a toy or something to wear,” said Nebraska State Treasurer Tom Briese. “Giving the gift of education is a long-term investment toward a loved one’s future that will help ease financial burdens that can add up with higher education.”
How to Gift
Account owners can invite friends and family members to contribute to a NEST 529 account. To get started, visit NEST529.com/Friends-Family-Gifting. When a contribution has been made, the gift-giver can print a NEST 529 holiday card for the recipient.
As 2023 comes to an end, accounts owners are encouraged to consider the tax advantages of end-of-year contributions to their NEST 529 account. Nebraska account owners are eligible to receive a Nebraska state income tax deduction of up to $10,000 ($5,000 if married, filing separately) for contributions made to their own NEST accounts.
“It’s easy to see the many benefits of a NEST 529 account for a loved one’s educational future, and yearly tax benefits from contributions can be helpful just like the rewards seen when the funds are withdrawn,” said Briese.
Because the last day of the year falls on a Sunday, financial contributions eligible for 2023 tax benefits must be mailed and postmarked by December 30, 2023. Account owners can also contribute online by logging into their account at NEST529.com.
Visit NEST529.com/tax-benefits to read more about the benefits of a NEST 529 Education Savings Plan.
The Nebraska State Treasurer serves as the Program Trustee. All investments, including the portfolio structure offered through the NEST 529 program, are vetted and approved by the Nebraska Investment Council.