College Savings Plan Year-End Tax Deductions

State Treasurer Ron Ross urges Nebraskans to sign up before Dec. 31

"College Savings Plans continue to be the perfect way for parents and grandparents to save for a loved one's college education. The Nebraska College Savings Plans are designed to meet the needs of every family and every budget; making saving for college simple and affordable," Ross said.

According to Ross, to take advantage of the Nebraska State Income Tax deduction, an account needs to be established and all contributions for 2006 must be received prior to December 31, 2006. The tax deduction serves as a reduction in Nebraska taxable income ($1,000 per tax return; $500 if married filing separately).

"To avoid the year-end mail crunch, we suggest mailing your enrollment forms and 2006 contributions before Christmas Day." PLEASE keep in mind the last business day in 2006 is Friday, December 29th. "A college savings plan account is a great gift idea for parents and grandparents. Give a gift that will last a lifetime. Act now to save for your child or grandchild's future and give a little gift to yourself," suggested Ross.

Nebraska's College Savings Program has seen tremendous growth since its inception in January 2001. There are $1.5 billion in assets and over 135,000 accounts in all four plans.

Nebraskans have a total of four college savings plans to choose from. They are: the College Savings Plan of Nebraska, the TD AMERITRADE 529 College Savings Plan, the AIM College Savings Plan and the State Farm College Savings Plan. Union Bank and Trust Company serves as the Program Manager.

"We want all kids to realize their dream of attending college. By offering tax-saving advantages and providing multiple investment options, we are helping families make higher education a reality for their children," Ross said.

For more information about the Nebraska College Savings Program, call my office at (402) 471-1088 or consult your financial advisor.

"And remember, to gain the Nebraska State Income Tax deduction for 2006; you must act before the end of the year," Ross said.