Talk to Us About Our Educational Savings Plans
As parents and grandparents, we want to provide our children with the brightest possible future. Education savings plans from State Farm® can help. Both the federal and state governments have made it easier to save for college. There are tax-favored choices that can help put a college education within reach.
Coverdell Education Savings Account (ESA)
The Coverdell ESA was created as an incentive to help parents and students save for education expenses.
The total contributions for the beneficiary of this account cannot be more than $2000, in any year, no matter how many accounts have been established.
Contributions to a Coverdell ESA are not tax-deductible, but amounts deposited in the account grow tax free until distributed.
State Farm College Savings (529)
The State Farm College Savings Plan is an education savings plan, sponsored by the State of Nebraska, designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which introduced these types of savings plans in 1996.
Our plan can be used to meet qualified expenses at most colleges nationwide. Your choice of school is not affected by the fact our plan is sponsored by the State of Nebraska.
UGMA and UTMA accounts allow you to invest for a child's future while taking advantage of the child's potentially lower tax rate.
While UGMA and UTMA accounts are not specifically designed to provide financing for college, many parents and grandparents use them for this purpose because the assets become available to the child when he or she reaches the age of majority specified under the state's UGMA or UTMA law.
Investing involves risk, including potential for loss.
More information on the four Nebraska 529 plans can be found at the Nebraska State Treasurer's website.
Not FDIC Insured
- No Bank Guarantee
- May Lose Value
State Farm Bank®, Bloomington, Illinois, is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and subject to investment risk, including possible loss of principal invested. Contact State Farm Bank toll-free at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service.