529 College Savings Plans
TD Ameritrade 529 College Savings Plan
Invest Toward Your Loved One's College Education
The TD Ameritrade 529 College Savings Plan ("Plan") is a state-sponsored, tax-deferred investment account that allows you to invest in a diverse selection of investment portfolios to help pay toward a child's or other loved one’s higher education down the road, regardless of your income.
About the Plan
The Plan is sponsored by the State of Nebraska. The Nebraska State Treasurer is responsible for the overall administration of the Plan, and TD Ameritrade, Inc. serves as sub-administrator. The Nebraska Investment Council is responsible for the investment of money in the Trust and selection of all Investment Options. Union Bank and Trust Company serves as Program Manager and also renders certain distribution services to the Plan. TD Ameritrade Investment Management, LLC, provides portfolio consulting services to the Nebraska Investment Council and Program Manager.
Find out more in the Program Disclosure Statement.
Benefits of 529 plans expanded by SECURE Act and 2017 tax reform
The December 2019 passing of the SECURE Act and 2017 federal tax law reform allow for the use of savings in 529 plans to cover apprenticeship related expenses, student loan repayments and K-12 tuition. Please note that eligibility varies by individual states and plans. Learn more about these reforms and how they affect the Plan.
Tax Advantages: The Plan offers several federal income tax benefits. Any investment earnings grow tax-deferred, and distributions to pay the beneficiary's qualified education expenses come out federally tax-free.1 Tax-deferred growth and tax-free withdrawals for qualified education expenses can be beneficial when saving and paying for college. If withdrawals are used for non-qualified purposes, the earnings portion may be subject to federal and state income tax and a 10% federal penalty tax. Check with your home state as state tax laws vary.
Affordability: The Plan is designed to meet the needs of virtually every family size and budget. There is no minimum annual or ongoing contribution requirement.
Estate Tax Benefits: Contributions are considered a completed gift, which means they may be excludible from your taxable estate. You can contribute up to $15,000 ($30,000 for married couples) per year per beneficiary free from federal gift tax. 529 plans have a special accelerated gifting rule that allows you to gift as much as $75,000 in a single year without incurring gift tax consequences.2 The $75,000 contribution counts as a $15,000 gift in the current year and in each succeeding four years. Married couples who jointly file tax returns can contribute up to $150,000. You can make these gifts to as many beneficiaries as you want without incurring a gift tax. This option allows you to make a larger initial gift without incurring gift tax. Consult with your tax advisor regarding your specific situation. The Plan's overall account balance limit is $500,000 per beneficiary.3
Convenient contribution choices: It's easy to contribute to the Plan. You can deposit funds into your account by check, set up an Automatic Investment Plan, or contribute through automatic payroll direct deposit if your employer provides this service.
Flexibility: You can use account withdrawals at eligible schools nationwide. The Plan covers almost all expenses related to college including tuition, fees, reasonable room and board, books, and equipment including computers, software, and supplies. Reasonable room and board are considered qualified expenses if the student is enrolled at least half time. If a child decides not to attend college or doesn't use all of the funds, you can change the beneficiary to another member of the family.
As the owner of the account, you may withdraw all or a portion of the funds at any time, even for paying expenses not related to college. However, the earnings portion of funds withdrawn for nonqualified expenses will be subject to the distributee’s federal and state income tax rate plus a 10% federal penalty tax on the earnings portion of the withdrawal. If the beneficiary receives a scholarship, the account owner may withdraw up to the amount of the scholarship without incurring the federal penalty on the earnings portion. The federal penalty tax is also waived if the beneficiary dies or becomes disabled.
Choices: The diversified investment menu of the Plan differentiates it from many others. Each of the multiple investment choices is designed to help you invest toward the cost of higher education. For more information, see Investment Choices.
Ready to open a 529 account?
Be sure to have the following information handy for both you and your beneficiary to help ensure a quick enrollment process.
- Current address and contact information
- Social Security number or Individual Taxpayer Indentification Number (ITIN)
- Your bank routing and account numbers (to pre-schedule contributions from your checking or savings account)
You must complete an Enrollment Form to open an account for a new beneficiary and submit a separate form for each account and each beneficiary.
Use the Incoming Rollover Form to transfer funds from another 529 plan or Coverdell Education Savings Account ("CESA") to an existing account in the Plan. If you have not established an account, you must also complete an Enrollment Form.
Complete the Enrollment Form and, if applicable, the Incoming Rollover Form. Please type or print unless a signature is requested. By signing the Enrollment Form, you acknowledge that you have read the Program Disclosure Statement. Mail the completed form(s) to the address listed on them.
To make changes to an existing account or to request a withdrawal, download, complete, and mail the appropriate PDF form(s) to the address listed on them. You can also request forms by calling 877-408-4644.
Beneficiary Change Form
Fund Transfer Form
Successor Account Owner Add or Change Form
Account Update Form
Automatic Investment Plan/Electronic Bank Transfer Form
Incoming Rollover Form
Payroll Direct Deposit
Investment Option Change
Account Information Change Form
Withdrawal Request Form
Organization Resolution Form
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