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. TD Ameritrade , Inc. is the distributor of the Plan.

Plan Benefits

Tax Advantages: The TD Ameritrade 529 College Savings Plan facilitates various tax advantages. Money in your account grows 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, and use of well-known funds and ETFs, 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 meet the increasing cost of higher education. For more detailed information, see Investment Options.

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Account Maintenance

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
PO Box 30278
Omaha, NE 68103-1378

Overnight Address
TD Ameritrade 529 College Savings Plan
2534 Madison Avenue, 3rd Floor
Kansas City, MO 64108

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.

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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 when the fair market value of all accounts owned by all account owners in the Trust for the same beneficiary exceeds $360,000.

Before investing in the Plan, carefully consider the investment objectives, risks, charges and expenses involved. This and other information regarding the plan is included in the Program Disclosure Statement, Participation Agreement and each prospectus on the underlying funds, which may be obtained by Emailing us or by calling 877-408-4644. Please read each prospectus, the Program Disclosure Statement and Participation Agreement carefully prior to investing. Investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost.

You should be aware that other states may sponsor their own qualified tuition plans and may offer a state tax deduction or other benefits that are limited to residents who invest in that plan. You should consult with your financial, tax or other advisor about state and local tax benefits or limitations based on your specific situation. Favorable tax treatment by your state of residence should be one of many appropriately weighted factors you should consider in making an investment decision.

Investments in the TD Ameritrade 529 College Savings Plan are not guaranteed or insured by the FDIC, the 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 Investment Council, the Nebraska State Treasurer, First National Bank of Omaha, TD Ameritrade, its agents or affiliates, or any other entity.

The TD Ameritrade 529 College Savings Plan (the "Plan") is one of four college savings plans 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. The Nebraska State Treasurer serves as Trustee and First National Bank of Omaha serves as Program Manager. TD Ameritrade, Inc. distributes the Plan. The Plan is intended to operate as a qualified tuition program, pursuant to Section 529 of the U.S. Internal Revenue Code.

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.

There is no guarantee that any investment portfolio will achieve its investment goals. The value of an account will go up or down based on the performance of the Portfolio in which the account is invested. When funds are withdrawn, they may have more or less value than the total contributions made to the account. Past investment performance is no guarantee of future results.

Participation in the Plan does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover the 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.

Investment Products: Not FDIC Insured. No Bank Guarantee. May Lose Value.

     
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