Nebraska babies born in 2021 will get Meadowlark Savings Pledge funds
LINCOLN, Neb. (Press Release) - Each child born in Nebraska in 2021 will receive $50 in a NEST 529 College Savings account, as directed by the Meadowlark Act.
This April, families of eligible babies will receive a letter from the State Treasurer announcing their qualification for the Meadowlark Savings Pledge. The children can use the contribution for education expenses when the time comes for them to go to college.
College tuition and costs continue to increase at, and above, the rate of inflation. Since 2010, published in-state tuition and fees at public four-year institutions increased by 16 percent.
For those families who welcomed a baby in 2021, the Meadowlark Program could be the beginning of their children’s educational savings journey, setting them up to soar. As college expenses continue to increase, it is important families start saving sooner rather than later. Meadowlark combined with a NEST 529 account is an easy way to help loved ones take flight toward their dreams.
The Meadowlark Program, which became effective in 2020, was designed to help Nebraska families get a head start on future educational expenses. For this year’s contributions, any baby born on or after January 1, 2021 who is a resident of Nebraska at the time of birth, is eligible to receive a one-time Meadowlark seed contribution. This is an automatic enrollment that does not require families to pay extra costs or complete any time-consuming paperwork.
Nationally Recognized NEST 529 College Saving Plan
Meadowlark is an important beginning on a savings path. But, families should open their own NEST 529 account to start building for their children’s futures today. A NEST 529 account gives families the ability to make routine contributions that can be put to work helping a child achieve their aspirations.
Morningstar, Inc., a nationwide financial research firm that specializes in fund, stock, and general market data analysis, recognizes NEST 529 as a Morningstar Medalist 529 college savings plan. Key features include:
- 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 their investment selections.
- Tax Benefits—Tax-advantaged savings include a Nebraska state tax deduction, tax-deferred growth, and tax-free qualified withdrawals.2 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.3
- 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, Dodge & Cox and others.
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