529 Contributions

• 529 Basic Information
• 529 Contributions
• 529 Withdrawals
• Financial Aid

Q: What happens to contributions over the maximum limit?
A: The servicing agent will not knowingly accept contributions in excess of the applicable limit. If, however, it is determined that contributions are made in excess of the applicable limit, the excess and any earnings (or less any loss) attributable to such excess will be promptly refunded and will be treated as a nonqualified withdrawal that may be subject to a 10% federal penalty tax, but no contingent deferred sales charge will be assessed by the servicing agent.1

Q: How are my plan contributions invested?
A: Contributions will be invested in the selected Portfolio(s) and designated allocations that you choose. Under federal tax law, once a Portfolio selection has been made, an Account Owner may only change how previous contributions (and any earnings thereon) have been allocated among the available Portfolio options for all accounts for the same Designated Beneficiary once per calendar year or upon a change of the Designated Beneficiary.

The plan consists of nine investment portfolios – four Static Portfolios and five Enrollment-Based Portfolios. The Static Portfolios and the Enrollment-Based Portfolios each invest all of their assets in underlying OppenheimerFunds².  The Oppenheimer investment portfolios are each a “fund of funds” that invest their assets in other underlying mutual funds managed by OFI Private Investments Inc. (OFIPI), a subsidiary of OppenheimerFunds, Inc. Each Portfolio seeks to meet its investment objective by building a Portfolio of investments that meet a target investment allocation between equity and fixed-income investments. Each portfolio's performance depends on the investment performance of the underlying funds in which it invests. Therefore, the risks of investing in the Portfolios are the same as the risks associated with an investment in the underlying investments.

Static Portfolios

The Underlying Investments in which each of the four Static Portfolios invests remains the same and does not change based on the age of the Designated Beneficiary, This helps provide control over how your savings are invested by allowing you to choose the portfolio(s) that work best for you.  Should your needs or goals change, you are responsible for selecting a new portfolio (transfers are allowed once per calendar year).

Enrollment Based Portfolios

The Enrollment-Based Portfolios are a series of five investment portfolios that are designed to fit particular investment time horizons.  Your contributions are invested in the underlying investments based on the anticipated time to college enrollment of the Designated Beneficiary. The portfolios automatically adjust over time and will typically be invested more heavily in equity investments when the Designated Beneficiary is younger and more heavily in fixed-income and money market investments as the Designated Beneficiary nears enrollment in college.

If you invest in the Enrollment-Based Portfolios, OppenheimerFunds will reallocate your investments as the Designated Beneficiary nears enrollment. In this case, you will be asked to provide (on the Enrollment Application) your Designated Beneficiary’s estimated year of enrollment in college. OppenheimerFunds will make the determination as to whether your investments are scheduled to move to the next portfolio on an annual basis. Thus, if you open an account in 2009 and indicate on your Enrollment Application that your Designated Beneficiary is expected to begin enrollment in 2014, OppenheimerFunds will reallocate your investments on a schedule which will have you invested in the College Now Portfolio before September 1, 2014. If you elect to invest in the Enrollment-Based Portfolios in an account for a Designated Beneficiary who is under age 18, and you do not provide an estimated time to enrollment, your initial investment will be made based on the assumption that enrollment will begin in the year in which the Designated Beneficiary turns 18 years of age.

It is important to note that there is market risk involved when investing in mutual funds, including possible loss of principal.

Please refer to the Enrollment Handbook (PDF 445 KB) for more information on The State Farm® College Savings Plan.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.  Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

The State Farm College Savings Plan is available by registered representatives of State Farm VP Management Corp., One State Farm Plaza, Bloomington, IL 61710, 1-800-447-4930. Please read carefully the Enrollment Handbook and Participation Agreement and consider the investment objectives, risks, fees and expenses and other information associated with The State Farm College Savings Plan before investing or sending money. State and local tax laws vary. If you or the designated beneficiary are not Nebraska residents, you should consider before investing whether you or the designated beneficiary's home state offers any state tax or other benefits to its residents for investing in the plan offered by the state.

The State Farm College Savings Plan (the "plan") is sponsored by the State of Nebraska and administered by the Nebraska State Treasurer. The plan is established in cooperation with State Farm VP Management Corp. ("State Farm"), the State of Nebraska, and OFI Private Investments Inc. (OFIPI), a subsidiary of OppenheimerFunds Inc, pursuant to which State Farm offers classes of shares in a series of accounts within the Nebraska Educational Savings Plan Trust (the "Trust" and plan issuer) that are distributed by OppenheimerFunds Distributor, Inc. (OFDI and together with OFIPI, “Oppenheimer”). The Trust offers other accounts that are not affiliated with the plan.

The Nebraska State Treasurer serves as trustee of the plan; OFIPI serves as the investment manager, with the oversight of the Nebraska Investment Council; and servicing agent: OFDI serves as the distributor: Union Bank & Trust (“Union Bank”) serves as the program manager.

State Farm does not provide investment management services for the plan and the accounts in the plan are not insured or guaranteed by State Farm, Oppenheimer, Union Bank and Trust Company, the Trust, the State of Nebraska, the Nebraska State Treasurer, the Nebraska Investment Council, any of their respective affiliates, directors, officers or agents, or any other entity.

State Farm VP Management Corp Risk/Important Disclosures. State Farm Mutual Funds Prospectus. The State Farm College Savings Plan Enrollment Handbook (PDF 445 KB) .

AP2008/10/1263