The Nebraska Educational Savings Plan Trust was established by the Nebraska State Legislature with a January 1, 2001, effective date. The Plan is an Internal Revenue Code Section 529 Plan providing tax-deferred growth of funds for higher education costs. Participants can choose between two series of the Nebraska Educational Savings Plan Trust – the College Savings Plan of Nebraska or the AIM College Savings Plan. Within each of these series, there are several types of accounts that are described in further detail below.
The College Savings Plan of Nebraska
Union Bank Direct Accounts
Individuals may contact Union Bank directly to participate in the College Savings Plan of Nebraska. Participants may choose from the following investment options.
Age-based Portfolios: Participant contributions are invested based on the current age of the child and the type of investment style elected. Investments are automatically changed as the child moves from one age bracket to the next.
(Equity/Fixed Income/Real Estate/Money Market)
| Ages of Beneficiary | Age-Based Aggressive |
Age-Based Growth |
Age- Based Balanced |
Age-Based Conservative |
| Ages 0-5 | 100/0/0/0 |
80/15/5/0 |
60/26/5/9 |
40/36/5/19 |
| Ages 6-10 | 80/15/5/0 |
60/26/5/9 |
40/36/5/19 |
20/46/5/29 |
| Ages 11-15 | 60/26/5/9 |
40/36/5/19 |
20/46/5/29 |
0/50/0/50 |
| Ages 16-20 | 40/36/5/19 |
20/46/5/29 |
0/50/0/50 |
0/25/0/75 |
| Ages 21+ | 20/46/5/29 |
0/50/0/50 |
0/25/0/75 |
0/0/0/100 |
Note: The equity asset class includes both domestic and international equities.
Target Portfolios: These portfolios provide a static asset allocation over the life of the account.
Equity |
Fixed Income |
Real Estate |
Money Market |
|
| Fund 100 | 100% |
0% |
0% |
0% |
| Fund 80 | 80% |
15% |
5% |
0% |
| Fund 60 | 60% |
26% |
5% |
9% |
| Fund 40 | 40% |
36% |
5% |
19% |
| Fund 20 | 20% |
46% |
5% |
29% |
| Conservative | 0% |
50% |
0% |
50% |
Note: The equity asset class includes both domestic and international equities.
Individual Fund Portfolios: Participants may choose from 20 individual fund portfolios for their investment. These portfolios invest in the underlying mutual fund.
Overall, twenty-one investment/mutual funds are utilized within the program, either offered as an individual portfolio and/or used in the target and age-based portfolios. In addition to any manager fees within the funds selected, the Plan imposes a 0.60% annual program manager fee as well as a $5.00 quarterly account fee.
Union Bank Advisor Accounts
The College Savings Plan of Nebraska is also offered to individuals who are using the expertise and guidance of a financial advisor. The financial advisor will work with Union Bank to open and transfer money to the participant account.
Participants with a Union Bank advisor account are offered all of the same investment options as those with a direct account. However, participants must elect which fee structure they wish to purchase: Fee Structure A, Fee Structure C, or Fee Structure H. Annual fees and initial sales charges vary depending on which fee structure the participant chooses. For more detailed information, please go to: www.planforcollegenow.com.
TD Ameritrade Direct Accounts
Beginning in 2002, the College Savings Plan of Nebraska is also offered through TD Ameritrade. Participant accounts can be set up directly with TD Ameritrade and participants are offered the same investment options as those offered to participants with Union Bank direct and advisor accounts. Each account is assessed a 0.85% annual management fee and a $5.00 quarterly account fee. Applicable mutual fund fees will vary by investment choice. For more detailed information, please go to: www.tdameritrade.com.
AIM College Savings Plan
AIM Accounts
The AIM series allows individuals to participate in the Nebraska 529 Plan while utilizing the expertise and guidance of a financial advisor. Participants may choose from the following investment options which are comprised solely of AIM mutual funds.
Fixed-allocation Portfolios: These portfolios provide a static asset allocation over the life of the account.
- AIM Growth Allocation Fund 529 Portfolio (95% Equity/5% Fixed Income)
- AIM Moderate Growth Allocation Fund 529 Portfolio (80% Equity/20% Fixed Income)
- AIM Moderate Allocation Fund 529 Portfolio (60% Equity/40% Fixed Income)
- AIM Moderately Conservative Allocation Fund 529 Portfolio (40% Equity/60% Fixed Income)
- AIM Conservative Allocation Fund 529 Portfolio (25% Equity/65% Fixed Income/10% Cash Equivalents)
Enrollment-based Portfolios: Investments in these portfolios are based on the anticipated time to college enrollment of the beneficiary. Participant accounts are automatically transferred to the appropriate portfolios as the beneficiary ages to the next tier.
Equity * |
Fixed Income |
Money Market |
|
| 13-15 Years to College Portfolio | 95% |
5% |
0% |
| 7-12 Years to College Portfolio | 80% |
20% |
0% |
| 4-6 Years to College Portfolio | 60% |
40% |
0% |
| 1-3 Years to College Portfolio | 40% |
60% |
0% |
| College Now Portfolio | 25% |
65% |
10% |
| *Equity allocation includes domestic and international | |||
Individual Fund Portfolios: Participants may choose the AIM Money Market Fund 529 Portfolio. This portfolio invests in the AIM underlying mutual fund.
AIM College Savings Plan participants must elect which class of portfolio shares they wish to purchase: Class A, Class B, or Class C. Annual fees and initial sales charges vary depending on which class of shares the participant chooses. Each account will also bear its pro-rata share of the fees and expenses charged within the AIM funds that make up each 529 portfolio. For more detailed information, please go to: www.aiminvestments.com.
State Farm Accounts
State Farm agents market the AIM series of the Nebraska Educational Savings Plan Trust under the State Farm name. Participants may choose from the following investment options which are comprised solely of AIM mutual funds.
Fixed-allocation Portfolios: These portfolios provide a static asset allocation over the life of the account.
- AIM Growth Allocation Fund 529 Portfolio (95% Equity/5% Fixed Income)
- AIM Moderate Growth Allocation Fund 529 Portfolio (80% Equity/20% Fixed Income)
- AIM Moderate Allocation Fund 529 Portfolio (60% Equity/40% Fixed Income)
Enrollment-based Portfolios: Investments in these portfolios are based on the anticipated time to college enrollment of the beneficiary. Participant accounts are automatically transferred to the appropriate portfolios as the beneficiary ages to the next tier.
Equity * |
Fixed Income |
Money Market |
|
| 13-15 Years to College Portfolio | 95% |
5% |
0% |
| 7-12 Years to College Portfolio | 80% |
20% |
0% |
| 4-6 Years to College Portfolio | 60% |
40% |
0% |
| 1-3 Years to College Portfolio | 40% |
60% |
0% |
| College Now Portfolio | 25% |
65% |
10% |
| *Equity allocation includes domestic and international | |||
At this time, State Farm does not offer an investment option consisting of individual fund portfolios. State Farm College Savings Plan participants must elect which class of portfolio shares they wish to purchase: Class A or Class B. Annual fees and initial sales charges vary depending on which class of shares the participant chooses. Each account will also bear its pro-rata share of the fees and expenses charged within the AIM funds that make up each 529 portfolio. For more detailed information, please go to: www.statefarm.com.
Additional links:
- Nebraska College Savings Plan: www.planforcollegenow.com
- TD Ameritrade: www.tdameritrade.com
- AIM College Savings Plan: www.aiminvestments.com
- State Farm College Savings Plan: www.statefarm.com