FINISH THE YEAR STRONG HELP CLIENTS MAXIMIZE 2025 TAX SAVINGS WITH NEST 529 BY UNION BANK & TRUST AS YOU HELP CLIENTS WRAP UP THEIR 2025 financial plans, now’s the time to revisit strategies that can lower their tax liability while keeping long-term goals in sight. A contribution to a NEST 529 Education Savings Plan is a simple, effective way to do both. Encourage your clients to take advantage of these opportunities before Dec. 31, 2025, and help them start the new year with confidence. 1) Put Tax Savings to Work With triple tax advantages, NEST 529 makes a strong case for inclusion in any year-end plan: » State income tax deduction: Account owners who are Nebraska taxpayers can deduct up to $10,000 ($5,000 if married, filing separately) in contributions made this year.1 » Tax-deferred growth: Earnings grow taxdeferred, allowing education savings to build over time. » Tax-free withdrawals: When used for qualified education expenses,2 withdrawals are free from both federal and Nebraska state income tax. From tuition and room and board to apprenticeship costs and student loan payments, NEST 529 funds stretch farther than many clients realize—helping make education more affordable for future scholars. 2) Make Holiday Giving More Meaningful The holiday season is a great time to spark conversations about giving with purpose. Through NEST GiftED, family and friends can contribute to a loved one’s account—offering a thoughtful, lasting alternative to traditional gifts. Remind your clients that to qualify for the state income tax deduction, contributors must be account owners. Act Before Dec. 31 Encouraging clients to make their year-end contributions now ensures they capture 2025 tax benefits while helping the next generation soar toward their career dreams. Don’t let them miss this opportunity to strengthen their financial plans and invest in education. Want to learn more? Reach out to your NEST 529 representative to schedule a presentation for your office, or explore resources at NEST529.com. An investor should consider the investment objectives, risks and charges and expenses associated with municipal fund securities before investing. This and other important information is contained in the fund prospectuses and the NEST Direct College Savings Plan Program Disclosure Statement (issuer’s official statement), which can be obtained at NEST529.com and should be read carefully before investing. You can lose money by investing in an Investment Option. Each of the Investment Options involves investment risks, which are described in the Program Disclosure Statement. An investor should consider, before investing, whether the investor’s or beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan. Investors should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation. NOT FDIC INSURED*| NO BANK GUARANTEE | MAY LOSE VALUE (*Except the Bank Savings Underlying Investment) 1 Account owners may deduct for Nebraska income tax purposes contributions they make to their own account (and any other accounts they own in the Nebraska Educational Savings Plan Trust) up to an overall maximum of $10,000 ($5,000 if married, filing separately). Contributions in excess of $10,000 cannot be carried over to a future year. For a minor-owned or UGMA/ UTMA 529 account, the minor is considered the account owner for Nebraska state income tax deduction purposes. The minor must file a Nebraska tax return for the year their contributions are made to be eligible for a tax deduction for their own contributions. In the case of a UGMA/ UTMA 529 account, contributions by the parent/guardian listed as the custodian on the UGMA/UTMA Plan account are also eligible for a Nebraska state tax deduction. 2 Withdrawals used to pay for qualified higher education expenses are free from federal and Nebraska state income tax. Qualified higher education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance; certain room and board expenses incurred by students who are enrolled at least half-time; the purchase of computer or peripheral equipment, computer software, or Internet access and related services, if used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution; certain expenses for special needs services needed by a special needs beneficiary; apprenticeship program expenses; and payment of principal or interest on any qualified education loan of the beneficiary or a sibling of the beneficiary (up to an aggregate lifetime limit of $10,000 per individual). However, earnings on all other types of withdrawals are generally subject to federal and Nebraska state income taxes, and an additional 10% federal tax. Nebraska law does not treat the following Federal Qualified Higher Education Expenses as Nebraska Qualified Expenses: K–12 Expenses and Qualified Post-Secondary Credentialing Expenses. If a withdrawal is made for such purposes, although it is a Federal Qualified Withdrawal, it will be treated as a Nebraska Non-Qualified Withdrawal and may result in the recapture of a previously claimed Nebraska state income tax deduction, and the earnings portion will be subject to Nebraska state income tax. Please consult your tax professional about your particular situation. 29 nescpa.org
RkJQdWJsaXNoZXIy MTg3NDExNQ==