First National Bank of Omaha Brings Updates, Enhancements to State Farm® 529 Savings Plan
Reduced costs, new investment options now available
Lincoln, Neb. (August 6, 2018) – Nebraska State Treasurer Don Stenberg today announced a series of changes to the State Farm 529 Savings Plan (Plan). As a result of the changes, First National Bank of Omaha, which has been the program manager, now becomes distributor and servicing agent as well.
The State Farm 529 Savings Plan is one of four college savings plans offered by the Nebraska Educational Savings Trust (NEST 529), Nebraska’s state-sponsored, tax-advantaged 529 college savings program. Treasurer Stenberg is Trustee of NEST. The other plans are NEST Direct College Savings Plan, NEST Advisor College Savings Plan, and TD Ameritrade 529 College Savings Plan.
Effective today, State Farm 529 Savings Plan updates include reduced expenses for Plan participants, as well as new investment options and underlying funds.
The Plan’s investment options include the following:
- Age-Based Investment Option. Includes allocations among equity, fixed income, and cash equivalent funds. Contributions are placed in a portfolio according to the child’s age, with an asset allocation that best corresponds to the number of years until college. As the child gets close to college, the allocations become more conservative. The new expenses for Plan participants range from 0.57 percent to 0.61 percent. Formerly they ranged from 0.81 percent to 1.28 percent.
- Static Investment Options. All Equity, Growth, Moderate Growth, Balanced, Conservative, Money Market, and Bank Savings (FDIC-insured) options offer fixed allocations to underlying funds throughout the life of the investments. The new expenses for Plan participants range from 0.20 percent to 0.61 percent. Formerly expenses ranged from 0.38 percent to 1.28 percent.
“These new options will help even more families maximize their savings to prepare for the costs of higher education,” Treasurer Stenberg said. “We look forward to helping our account owners plan for the future educational needs of their children and grandchildren.”
“We are confident account owners will be pleased with the new 529 Plan with lower prices, enhanced investments, and new rewards programs that First National Bank brings to its new role with the State Farm 529 Savings Plan,” said Deborah Goodkin, Managing Director, Savings Plans, First National Bank of Omaha. “Affordable, tax advantaged, and with diversified investment options, the updated Plan allows State Farm registered agents to help customers make higher education attainable.”
“We’re excited about the opportunity to help families across America with their education savings needs,” said Lisa Stewart, Vice President – Life, Health & Investment Planning Services, State Farm. “With the partnership of First National and the State of Nebraska, State Farm agents can help customers make those dreams a reality.”
The changes will not affect the tax status of the State Farm 529 Savings Plan and do not count towards the account owner’s twice-a-year limit to change investment options.
About State Farm
The mission of State Farm is to help people manage the risks of everyday life, recover from the unexpected, and realize their dreams. State Farm and its affiliates are the largest providers of auto and home insurance in the United States. Its nearly 19,000 agents and nearly 65,000 employees serve more than 84 million policies and accounts – more than 81 million auto, fire, life, health and commercial policies and more than 2 million bank accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 33 on the 2017 Fortune 500 list of largest companies. For more information, please visit https://www.statefarm.com.
State Farm Bank®, Bloomington, Illinois, is a Member FDIC and an Equal Housing Lender. Insurance, annuities and securities products offered by affiliate companies of State Farm Bank are not FDIC insured, are not guaranteed by State Farm Bank, and are subject to investment risk, including possible loss of principal.
About NEST 529
NEST 529 is a tax-advantaged 529 college savings plan and provides four plans to help make saving for college simple and affordable: State Farm 529 Savings Plan, NEST Direct College Savings Plan, NEST Advisor College Savings Plan, and TD Ameritrade 529 College Savings Plan. The Nebraska State Treasurer serves as Program Trustee. First National Bank of Omaha serves as Program Manager, and all investments are approved by the Nebraska Investment Council. Families nationwide are saving for college using Nebraska’s 529 College Savings Plans, which have more than 260,000 accounts, including 82,000 in Nebraska. Visit https://www.statefarm.com/finances/education-savings-plans and treasurer.nebraska.gov for more information.
About First National Bank of Omaha
First National Bank is a subsidiary of First National of Nebraska. First National and its affiliates have more than $21 billion in assets and 5,000 employee associates. Primary banking offices are located in Nebraska, Colorado, Illinois, Iowa, Kansas, South Dakota and Texas.
An investor should consider the Plan’s investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement available at www.statefarm.com contains more information, and should be read carefully before investing. AP2018/07/0910
Investors should consider before investing whether their or their beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors 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.
State Farm VP Management Corp. is a separate entity from those State Farm entities that provide banking and insurance products. Neither State Farm nor its agents provide tax or legal advice.