Proposal Would Expand NEST
Lincoln – Nebraskans could take a tax deduction equal to contributions that their employers make to their state college savings accounts under a bill heard Jan. 29 by the Revenue Committee.
The Nebraska Education Savings Trust Plan provides tax-advantaged 529 accounts meant to encourage saving for postsecondary education costs. Contributions grow tax-deferred and withdrawals are exempt from taxes for qualified expenses.
Gretna Sen. Andrew La Grone, sponsor of LB 1042, said the bill would ensure employees do not have to pay state income tax on employer contributions to their NEST accounts. A deduction would begin in 2021, and could not exceed $5,000 for those married filing separately or $10,000 for other filers.
– Nebraska Unicameral Information Office
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