Abby Berman Cohen
The Rosen Group
Director of Marketing
First National Bank
Director of Communications
Nebraska State Treasurer's Office
NEST 529 Advisor College Savings Plan Changes Announced
Lower Fees, Adjustments to Current Plan for Greater Benefits
Lincoln, Neb. (August 3, 2017) – Nebraska State Treasurer Don Stenberg and First National Bank of Omaha today announced improvements to the NEST 529 Advisor College Savings Plan, effective August 27, 2017, to simplify the Plan’s structure and reduce costs. The changes include lowering the total asset-based fees for the majority of the Age-Based and Static Investment Options, reducing the Class A Up-Front Sales Load, and implementing a feature to reduce the life-time cost to the account owner invested in Class C. The Maximum Contribution Limit also has been raised from $360,000 to $400,000.
“The NEST 529 Advisor Plan is recognized industry-wide as a low-cost, high performing plan with excellent investment choices,” said Nebraska State Treasurer Don Stenberg. “These changes will enhance the Plan and have the potential to yield even better performance in the future for account owners.”
Highlights of the changes are as follows:
Class A Conversion:
- All Class C units purchased on or before August 18, 2012, will move to Class A on or about September 18, 2017. Future automatic conversions will occur approximately the 18th day of every month, following the fifth anniversary of the purchase date.
- No fees or sales charges will be applied when units move from Class C to Class A.
- When units move to Class A, the distribution and marketing expenses, calculated into the price per unit, will be
reduced from 1.00 percent to 0.25 percent.
Sales Load Reductions: Beginning August 27, 2017, new contributions investing in Class A will be charged a maximum of 3.50 percent, which can be reduced further based on the account owner’s aggregated asset amount.
Streamlined Breakpoint Schedule for Rights of Accumulation and Letter of Intent:
Annual Asset-Based Fee Reduction: The cost has been reduced in 75 percent of the Age-Based portfolios and two of the three Static Portfolios.
Increased Maximum Contribution Limit: The Maximum Contribution Limit was increased from $360,000 to $400,000. Contributions can be made when the value of all accounts in the Nebraska Educational Savings Plan Trust for the same beneficiary is less than $400,000.
“Our mission is to support account owners and to help them maximize their college savings to meet their higher education savings goals,” said Deborah Goodkin, Managing Director, Savings Plans, First National Bank of Omaha. “These changes will help our advisors nationwide to provide their clients with a low cost, simple solution to saving for college. It will also ensure the account owner pays the lowest available fees.”
About NEST Advisor College Savings Plan
The NEST Advisor College Savings Plan is a tax-advantaged 529 college savings plan and one of four plans in the Nebraska Educational Savings Plan Trust (NEST). The four NEST plans that help make saving for college simple and affordable are: the NEST Direct College Savings Plan, the NEST Advisor College Savings Plan, the TD Ameritrade 529 College Savings Plan, and the State Farm College Savings Plan. The Nebraska State Treasurer serves as Program Trustee. First National Bank of Omaha serves as Program Manager, and all investments are approved by the Nebraska Investment Council. Families nationwide are saving for college using Nebraska’s 529 College Savings Plans, which have more than 251,000 accounts, including 76,000 in Nebraska. Visit NEST529Advisor.com and treasurer.nebraska.gov for more information.
Investments Are Not FDIC Insured* · No Bank, State or Federal Guarantee · May Lose Value
*Except the Bank Savings Individual Investment Option