The Nebraska State Treasurer’s Office recently relaunched its state college savings account program with new investment options and lower fees.

Nebraska Educational Savings Trust Direct College Savings accounts were migrated this past statement period to Union Bank & Trust, allowing for a 68% drop in the management fees and new age-based investment options.

The program is Nebraska’s tax-advantaged savings plan under IRS Section 529.

“Now is the best time to set the youth of Nebraska up to soar by investing in a 529 plan,” State Treasurer John Murante said in a statement. “When you invest in a NEST 529 account, Nebraska account owners can receive a state income tax deduction for the year, and that money will go to work for your child’s future educational goals. It’s a win-win.”

With the holiday season in full swing, Murante is encouraging Nebraskans to take advantage of NEST 529’s state income tax benefits. 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 per spouse if filing separately.

Nebraska’s NEST 529 Direct Plan earned a 2020 Bronze Morningstar rating from the Chicago investment firm, making it a best-in-class offering, Murante’s office said in a news release.

“Our highly qualified team is ready to work with Treasurer Murante and his team to set families up to soar toward their educational goals,” said Jason Muhleisen, vice president of Union Bank & Trust.

Families’ NEST accounts and investments have been transferred to UBT with no action required, and they should have received a program disclosure statement dated Dec. 4 for their records.

Next year, the state’s new Meadowlark Program will ensure every baby born that’s a resident of Nebraska at the time of their birth is automatically enrolled into a NEST account.

“Next year will be the first funding year under the new program,” Murante said. “We are committed to helping families set their children up to soar toward their dreams and future.”

For more information, visit NEST529.com.