NU Online News Service, April 19, 2:03 p.m. – Aid Association for Lutherans/Lutheran Brotherhood, Minneapolis, says it will be setting up a section 529 college savings program by distributing the College Savings Plan of Nebraska.
Section 529 of the federal Internal Revenue Code, the section that authorizes the college savings plans, lets each state set up its own program. Investors can defer federal income taxes on contributions to a program sponsored by any state.
Beneficiaries can withdraw assets for qualified tuition and living expenses without paying federal income taxes on the withdrawals.
Many states have hired outside financial services companies to run their 529 programs, but, in Nebraska, the state treasurer administers the program with administrative help from Union Bank & Trust Company, Lincoln, Neb.
The Nebraska program has no age limits, and plan beneficiaries can use the assets to pay to attend college anywhere in the country.