FAQsAn account may be opened by an individual, certain entities (including a partnership, corporation, estate or association that is domiciled in the United States), a custodian under a state’s UGMA or UTMA statute or a trust to save for the Federal Qualified Higher Education Expenses of a beneficiary. An account may also be established by a state or local government or a tax-exempt organization described in Code Section 501(c)(3) as part of a scholarship program operated by the government or organization. Each account owner must have a Social Security number or taxpayer identification number and a residential U.S. street address.To open an account, you must complete an Enrollment Form. You can obtain an Enrollment Form by:
The beneficiary is the individual for whom Federal Qualified Higher Education Expenses are expected to be paid from the account. Any individual with a valid Social Security number or taxpayer identification number can be a beneficiary. A beneficiary can be of any age and reside in any state. Each account may have only one beneficiary, but different account owners may establish different accounts for the same beneficiary. An account owner may also name himself or herself as the beneficiary.An account owner may change the beneficiary at any time without adverse federal income tax consequences if the new beneficiary is a Member of the Family of the former beneficiary. Upon a change in beneficiary, the account owner may also change the Investment Options in which the account is invested. However, upon a change of beneficiary, the existing assets plus the assets moved to the new beneficiary’s account cannot result in the total account values in all accounts in the Trust for the new beneficiary to exceed the maximum contribution limit, currently $500,000.Contributions can be made to an account by:
- Enrolling online
- Downloading the form, completing and submitting it to the Plan
Contributions by an account owner who files a Nebraska state income tax return, including the principal and earnings portions of rollovers from an out-of-state 529 qualified tuition program, are deductible in computing the account owner’s Nebraska taxable income for Nebraska income tax purposes in an amount not to exceed $10,000 ($5,000 for married taxpayers filing separate returns) in the aggregate for all contributions to all accounts within the Trust in any taxable year. Contributions by a custodian of an UGMA or UTMA account who is also the parent or guardian of the beneficiary of an UGMA or UTMA account may claim this deduction. Withdrawals for K–12 Tuition Expenses and Qualified Education Loan Payments are Nebraska Non-Qualified Withdrawals. Nebraska state tax deductions are subject to recapture if the account owner cancels a Participation Agreement, makes a partial or complete Nebraska Non-Qualified Withdrawal or rolls assets to an out-of-state 529 qualified tuition program or ABLE program.
- Contributing electronically from your bank account
- Wire transfer
- Payroll direct deposit
- Rollover from another 529 qualified tuition program
- Coverdell Education Savings Account
- Redemption from certain U.S. Savings Bonds
- Transfers within the Plan
- UGMA or UTMA accounts
- Bloomwell GiftED
- No annual account fee
- No enrollment, investment change, transfer, or withdrawal fee
Investment Option all-in costs:
Average Total Annual Options being compared Range Asset-Based Fee Age-Based Investment Options 0.18% - 0.32% 0.24% Static Investment Options 0.19% - 0.32% 0.23% Individual Fund Investment Options 0.16% - 0.70% 0.27%Distribution requests may be made online, by completing a Withdrawal Request Form, or by telephone. If the withdrawal request is in good order, the Plan typically will process the withdrawal and initiate payment within two business days of receipt. During periods of market volatility and at year-end, however, withdrawal requests may take up to five business days to process. When requesting a withdrawal please allow seven to ten days for the proceeds to reach you.This generally includes any accredited post-secondary educational institution in the United States offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree or another recognized post-secondary credential. Certain proprietary institutions, post-secondary vocational institutions and foreign schools also are Eligible Educational Institutions. These institutions must be eligible to participate in U.S. Department of Education student aid programs provided by Title IV of the Higher Education Act of 1965. Listing of Eligible SchoolsFederal Qualified Higher Education Expenses include:
Nebraska law does not treat the following Federal Qualified Higher Education Expenses as Nebraska Qualified Expenses:
- Tuition, fees, books, supplies and equipment required for the enrollment or attendance of a beneficiary at an Eligible Educational Institution
- Subject to certain limits, the beneficiary’s room and board expenses if enrolled at least half-time
- The purchase of computer or peripheral equipment, computer software or Internet access and related services if they are to be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an Eligible Educational Institution
- Expenses for special needs services in the case of a special needs beneficiary which are incurred in connection with enrollment or attendance at an Eligible Educational Institution
- K–12 Tuition Expenses
- Apprenticeship Program Expenses
- Qualified Education Loan Payments
The Plan utilizes Vanguard, DFA, T. Rowe Price, State Street, MetWest funds and other quality fund families.The Plan offers:
- K–12 Tuition Expenses
- 2 Age-Based Investment Options
- 10 Static Investment Options
- 17 Individual Fund Investment Options
Effective January 1, 2024, Bloomwell 529 assets can be rolled over directly into a Roth IRA.
IMPORTANT: The following limitations and restrictions apply:
- The Bloomwell 529 Account must have been maintained at least 15 years.
- Only contributions (and any earnings attributable thereto) made to the Bloomwell 529 Account more than five years prior can be rolled over.
- The Roth IRA rollover must be made in a direct trustee-to-trustee transfer to a Roth IRA account maintained for the benefit of the Bloomwell 529 Beneficiary.
- Rollover contributions cannot exceed the IRA contribution limit for that tax year ($7,000 in 2024). All contributions made during the year to individual retirement accounts for the Beneficiary count towards this limit.
- The aggregate amount for all years of Roth IRA Rollovers for the same Beneficiary from all 529 qualified tuition programs may not exceed $35,000.
Account Owners should consult their own tax and financial professionals before making a Roth IRA Rollover.
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