Invest Toward Your Loved One's College Education
The TD Ameritrade 529 College Savings Plan ("Plan") is a state-sponsored, tax-deferred investment account that allows you to invest in a diverse selection of investment portfolios to help pay toward a child's or other loved one’s higher education down the road, regardless of your income.
About the Plan
The Plan is sponsored by the State of Nebraska. The Nebraska State Treasurer is responsible for the overall administration of the Plan, and TD Ameritrade, Inc. serves as sub-administrator.The Nebraska Investment Council is responsible for the investment of money in the Trust and selection of all Investment Options. First National Bank of Omaha serves as Program Manager. First National Capital Markets, Inc. serves as Distributor. First National Bank of Omaha and First National Capital Markets are affiliated. TD Ameritrade Investment Management, LLC, is the Portfolio Consultant.
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Benefits of 529 plans expanded by SECURE Act and 2017 tax reform
The December 2019 passing of the SECURE Act and 2017 federal tax law reform allow for the use of savings in 529 plans to cover apprenticeship related expenses, student loan repayments and private K-12 education cost. Please note that eligibility varies by individual states and plans. Learn more about these reforms and how they affect the TD Ameritrade 529 College Savings Plan.
Tax Advantages: The Plan offers various tax advantages. Any growth in the account is tax-deferred, all qualified withdrawals for higher-education expenses remain free of federal and Nebraska state taxes, and you may exclude money in the Plan from your taxable estate.
Affordability: The Plan is designed to meet the needs of virtually every family size and budget. There is no minimum annual contribution requirement. You can contribute up to $15,000 per year per beneficiary without incurring federal gift taxes. A 529 plan is the only way to contribute as much as $75,000 in a single year without incurring federal gift taxes.1 The $75,000 counts for a $15,000 gift for the current year and four annual gifts of $15,000 in future years. Married couples who jointly file tax returns can contribute up to $150,000. You can make these gifts to as many beneficiaries as you want without incurring a gift tax. The Plan's overall account balance limit is $400,000 per beneficiary.2
Convenient contribution choices: It's easy to contribute to the Plan. You can deposit funds into your account by check, set up an Automatic Investment Plan, or contribute through automatic payroll deductions if your employer provides this service.
Flexibility: You can use account withdrawals at eligible schools nationwide. The Plan covers almost all expenses related to college including tuition, fees, reasonable room and board, books, and equipment including computers, software, and supplies. Reasonable room and board are considered qualified expenses if the student is enrolled at least half time. If a child decides not to attend college or doesn't use all of the funds, you can change the beneficiary.
As the owner of the account, you may close it or withdraw all or a portion of the funds at any time, even for paying expenses not related to college. However, the earnings portion of funds withdrawn for nonqualified expenses will be subject to the distributee’s income tax rate plus a 10% federal penalty on the earnings portion. If the beneficiary receives a scholarship, the account owner may withdraw up to the amount of the scholarship without incurring the federal penalty on the earnings portion. The penalty is also waived if the beneficiary dies or becomes disabled.
Choices: The diversified investment menu of the Plan differentiates it from many others. Each of the multiple investment choices is designed to help you invest toward the cost of higher education. For more information, see Investment Choices.
You must complete an Enrollment Form to open an account for a new beneficiary and submit a separate form for each beneficiary.
Use the Incoming Rollover Form to transfer funds from another 529 plan or Coverdell Education Savings Account (ESA) to an existing account in the TD Ameritrade 529 College Savings Plan. If you have not established an account, you must also complete an Enrollment Form.
Complete the Enrollment Form and, if applicable, the Incoming Rollover Form. Please type or print unless a signature is requested. By signing the Enrollment Form, you acknowledge that you have read the . Mail the completed form(s) to the address listed on them.
To make changes to an existing account or to request a withdrawal, download, complete, and mail the appropriate PDF form(s) to the address listed on them. You can also request forms by calling 877-408-4644 or sending us an e-mail.
Additional Contribution Form
Beneficiary Change Form
Account Features Form
Incoming Rollover Form
Payroll Direct Deposit
Investment Option Change
Account Information Change Form
Withdrawal Request Form
Organization Resolution Form
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