Nebraska Boosts 529 Plan Limits and Options Post-SECURE 2.0 Act
The Nebraska Educational Savings Plan Trust has seen significant updates following the passage of the SECURE 2.0 Act. The state has increased its contribution limit and expanded rollover options, making it an attractive choice for education savings.
The Nebraska State Treasurer's Office manages the Nebraska Educational Savings Plan Trust, offering two types of 529 plans: prepaid tuition and savings plans. Prepaid plans allow participants to lock in today's tuition rates for eligible universities, while savings plans invest contributions and grow based on market performance.
The SECURE 2.0 Act, passed in 2022, introduced a 529 rollover provision, enabling beneficiaries to transfer up to $35,000 into Roth IRAs, subject to annual contribution limits. Nebraska has embraced this change, increasing its total contribution limit to $500,000 and allowing 529 plan funds to be rolled over into Roth IRAs. Additionally, the state offers an Employer Matching Contribution Incentive Program, providing employers with a 25% match on eligible contributions to employees' 529 accounts, up to $2,000 per contributing employee.
With its increased contribution limits, expanded rollover options, and employer matching incentives, the Nebraska Educational Savings Plan Trust has become more appealing for those saving for education expenses. The state's embrace of the SECURE 2.0 Act demonstrates its commitment to supporting education savings and financial planning.
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