TD Ameritrade 529 College Savings Plan
About the Plan
The TD Ameritrade 529 College Savings Plan is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The Nebraska State Treasurer is responsible for the overall administration of the Plan. The Nebraska Investment Council is responsible for the investment of money in the Trust and the selection of all Investment Options. First National Bank of Omaha serves as Program Manager. First National Capital Markets serves as Distributor of the Plan. TD Ameritrade , Inc. serves as sub-administrator of the Plan. First National Bank of Omaha and First National Capital Markets are affiliated.
Find out more in the Program Disclosure Statement.
Tax Advantages: The TD Ameritrade 529 College Savings Plan facilitates various tax advantages. Any growth in your account is tax deferred, all qualified withdrawals for higher education expenses remain federal and Nebraska State tax-free. Also, money in a 529 plan may be excluded from your taxable estate, making the TD Ameritrade 529 College Savings Plan a possible way to exclude money from your estate while helping a child afford a college education.
Affordability: The TD Ameritrade 529 College Savings Plan is designed to meet the needs of virtually every family and every budget. No minimum annual contribution is required. You can contribute a maximum of $14,000 per year per beneficiary without incurring federal gift taxes. A 529 plan is the only way to contribute as much as $70,000 in one year without incurring federal gift taxes.1 The $70,000 contribution counts for the current year's $14,000 gift and for four future years' gift money. Couples who are married filing jointly can contribute up to $140,000 to each beneficiary in a single year. You can make these gifts to as many beneficiaries as you want all without gift tax. The Plan has a generous overall account balance limit of $360,000 per beneficiary.2
Contributing to the plan is simple and easy. You can deposit by check, set up an Automatic Investment Plan, or contribute through automatic payroll deduction (if your employer provides this service).
Flexibility: Account flexibility is a key component of the TD Ameritrade 529 College Savings Plan. Withdrawals from your account can be used at eligible schools nationwide. The TD Ameritrade 529 College Savings Plan covers almost all expenses related to college including tuition, fees, reasonable room and board, books, equipment, 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 does not use all of the funds, the account beneficiary can be changed to another member of the family.
The account owner may close the account or withdraw all or a portion of the funds at any time, even for non college-related expenses; however, the earnings portion of any funds withdrawn for nonqualified expenses will be subject to the distributee’s income tax rate plus a 10% federal penalty on the earnings portion of the withdrawal.
If the beneficiary receives a scholarship, the account owner may withdraw funds up to the amount of the scholarship without paying the 10% federal penalty on the earnings portion of the withdrawal. The IRS penalty is also waived if the beneficiary dies or becomes disabled.
Choices: The diversified investment menu is an important differentiator for the TD Ameritrade 529 College Savings Plan. Because there are several investment options, you have the freedom to choose the path that's right for you. Each investment option is designed to help you invest toward the increasing cost of higher education. For more detailed information, see Investment Options.
The forms needed to make changes to an existing account or to request a withdrawal can be accessed online or requested by phone or via e-mail. To download a form, please select it from the list below; then complete it and mail it to:
TD Ameritrade 529 College Savings Plan
These forms are PDF files and require Adobe Acrobat to download.
If you wish to receive a form via the U.S. Postal Service or have any questions, please contact us at 877-408-4644 or e-mail us.
1A donor may elect to treat a contribution to a beneficiary's account as made ratably over a five-year period. As a result a donor may make a contribution to a beneficiary's account of up to $70,000 (or up to twice that much if the donor and his or her spouse elect to “split” gifts) without any negative gift tax consequences, so long as the donor does not make any additional contributions to the account (or any other gifts to the account beneficiary) during that tax year or any of the succeeding four calendar years. A Federal Gift Tax Return (Form 709) is required to be filed. Please consult with your tax or legal professional. If the donor dies before the end of the five-year period, the portion of the contribution allocable to years after the donor's death will be includible in the donor's estate for Federal estate tax purposes.
2You may not make additional contributions to a TD Ameritrade 529 College Savings Plan account once the aggregate amount of contributions to the Nebraska Educational Savings Plan Trust for a beneficiary equals $360,000 or the value of all accounts in the Trust for the same beneficiary reaches $360,000.
The TD Ameritrade 529 College Savings Plan (the "Plan") is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The Plan offers a series of investment portfolios within the Nebraska Educational Savings Plan Trust (the "Trust"), which offers other investment portfolios not affiliated with the Plan. Nebraska Educational Savings Plan Trust serves as Issuer. The Plan is intended to operate as a qualified tuition program to be used only to save for qualified higher education expenses, pursuant to Section 529 of the U.S. Internal Revenue Code.
An investor should consider the Plan's investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement at collegesavings.tdameritrade.com, which contains more information, should be read carefully before investing.
Investors should consider before investing whether their or their beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program and should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation.
This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. This material is not an offer to sell or a solicitation of an offer to buy any securities. Any offer to sell units within the Plan may only be made by the Program Disclosure Statement and Participation Agreement relating to the Plan.
TD Ameritrade does not provide tax advice. Every individual's tax situation is different, and it is important to consult a qualified tax advisor regarding the application of the Plan's benefits to your own individual situation.
Participation in the Plan does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover future tuition and other higher education expenses, or that a beneficiary will be admitted to or permitted to continue to attend an eligible educational institution.
Investments in the TD Ameritrade 529 College Savings Plan are not guaranteed or insured by the FDIC, SIPC or any other government agency, and are not deposits or other obligations of any depository institution. Investments are not guaranteed or insured by the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, First National Bank of Omaha or TD Ameritrade, or their authorized agents or their affiliates, and are subject to investment risks, including loss of the principal amount invested.
ETFs can entail risks similar to direct stock ownership, including market, sector, or industry risks. Some ETFs may involve international risk, currency risk, commodity risk, and interest rate risk. Trading prices may not reflect the net asset value of the underlying securities. Commission fees typically apply.
Withdrawals used to pay for qualified higher education expenses are free from federal and Nebraska state income tax. These expenses include tuition, fees, books, supplies and equipment required for enrollment at a qualified institution of higher education. Room and board is considered a qualified education-related expense if the student is enrolled on at least a half-time basis. The earnings portion (if any) of a Non-Qualified Withdrawal will be treated as ordinary income to the recipient and may be subject to an additional 10% federal tax penalty.
Nebraska Educational Savings Plan Trust Issuer
Investment Products: Not FDIC Insured. No Bank Guarantee. May Lose Value.