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Please file this Supplement to the TD Ameritrade 529...

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  • TDASUP010420

    Please file this Supplement to the TD Ameritrade 529 College Savings Plan Program Disclosure Statement with your records

    TD AMERITRADE 529 COLLEGE SAVINGS PLAN PROGRAM DISCLOSURE STATEMENT DATED NOVEMBER 18, 2019

    SUPPLEMENT NUMBER ONE

    This Supplement amends the Program Disclosure Statement dated November 18, 2019 (the “Program Disclosure Statement”). You should read this Supplement in conjunction with the Program Disclosure Statement and retain it for future reference.

    Effective April 15, 2020 In late 2019, the President signed the Setting Every Community Up for Retirement Enhancement Act (the

    “SECURE Act” or the “Act”) into law. The Act impacts 529 plans in two significant ways:

    Account owners can use Plan assets to pay for fees, books, supplies or equipment required for

    the Beneficiary’s participation in a registered apprenticeship program; and

    Account owners can use Plan assets to pay principal or interest on a qualified education loan of

    the Beneficiary and/or the Beneficiary’s sibling, up to the federal lifetime limit ($10,000 per

    qualifying individual).

    These changes apply to distributions taken after December 31, 2018.

    However, these changes only apply to the Internal Revenue Code—not Nebraska laws that govern the

    Plan. This means that withdrawals to pay for valid apprenticeship costs or to repay student loans will only

    be treated as a Qualified Withdrawal under federal law. As such, the withdrawals will not be subject to

    federal income taxes or an additional 10% federal tax. Under state law, however, these withdrawals will

    be treated as Non-Qualified Withdrawals. As a result, they will be subject to recapture of any Nebraska

    state income tax deduction previously claimed by the account owner, and the earnings portion of the

    withdrawals will be subject to Nebraska state income tax.

    We encourage you to consult a qualified tax advisor about your personal situation and how these

    changes may impact you whether you are a Nebraska income tax payer or pay taxes in another state. Specific changes to the Program Disclosure Statement follow:

    PART 14 – DISTRIBUTIONS FROM AN ACCOUNT

    Under topic “Non-Qualified Withdrawals” on page 52, the second paragraph is replaced in its entirety

    with:

    In general, a Non-Qualified Withdrawal is also includable in your income for federal income tax

    purposes and subject to an additional 10% federal tax. Certain exceptions to this rule apply. For

    example, under Nebraska law, withdrawals from the TD Ameritrade 529 College Savings Plan

    that are used to pay for a Beneficiary’s K-12 tuition, costs associated with the Beneficiary’s

    apprenticeship program(s), or student loan repayments for the Beneficiary and/or the

    Beneficiary’s siblings are Non-Qualified Withdrawals and the earnings portion of the withdrawal

    will be includable in your income for state income tax purposes and is subject to recapture.

    However, the withdrawal is not includable in your income for federal income tax purposes or

    subject to an additional 10% federal tax.

  • TDASUP010420

    Under topic “Exceptions to the federal penalty tax” on page 52, a new third and fourth bullet are

    added:

    Used to pay for fees, books, supplies or equipment required for the Beneficiary’s participation

    in a registered apprenticeship program;

    Used to pay the principal or interest on a qualified education loan of the Beneficiary and/or

    the Beneficiary’s sibling, up to the federal lifetime limit ($10,000 per qualifying individual);

    PART 15 – FEDERAL AND STATE TAX CONSIDERATIONS

    Under topic “Non-Qualified Withdrawal taxable” on page 54, the first paragraph is replaced in its

    entirety with:

    There are also potential federal income tax disadvantages to an investment in a qualified tuition

    program. To the extent that a distribution from an account is a Non-Qualified Withdrawal, the

    portion of the Non-Qualified Withdrawal attributable to investment earnings on the account will

    generally be ordinary income to the recipient of the withdrawal for the year in which the

    withdrawal is made. A few exceptions to this are when a Non-Qualified Withdrawal is used to pay

    the Beneficiary’s K-12 tuition, costs associated with the Beneficiary’s apprenticeship program(s),

    or student loan repayments for the Beneficiary and/or the Beneficiary’s siblings. The earnings on

    such withdrawals will not be included in the recipient’s income for federal tax purposes, up to the

    federal limits. No part of the earnings portion of a Non-Qualified Withdrawal will be treated as

    capital gain. Under current law, the federal tax rates on ordinary income are generally greater

    than the tax rates on capital gain. The contribution portion of a withdrawal is not includable in

    gross income.

    Under topic “Exceptions to penalty tax” on page 54, a new third and fourth bullet are added:

    Used to pay for fees, books, supplies or equipment required for the Beneficiary’s participation

    in a registered apprenticeship program;

    Used to pay the principal or interest on a qualified education loan of the Beneficiary and/or

    the Beneficiary’s sibling, up to the federal lifetime limit ($10,000 per qualifying individual);

  • TD Ameritrade 529 College Savings PlanProgram Disclosure Statement and Participation Agreement

    November 18, 2019

  • Use of this Program Disclosure StatementThis Program Disclosure Statement is for use by persons investingin the TD Ameritrade 529 College Savings Plan (the “Plan”). ThisProgram Disclosure Statement contains important informationabout establishing and maintaining an account with the Plan.Investing is an important decision. Investors should carefully readthis Program Disclosure Statement in its entirety to understandand consider the Plan’s investment objectives, risks, charges andexpenses before opening an account and making an investmentdecision. No one is authorized to provide information that isdifferent from the information contained in this ProgramDisclosure Statement. Please keep this Program DisclosureStatement and all updates for future reference.

    About the Nebraska 529 College Savings PlansThe Plan is one of four college savings plans issued by theNebraska Educational Savings Plan Trust and administered by theNebraska State Treasurer, who serves as trustee to each of thefour plans. The four plans offer a series of investment optionswithin the Nebraska Educational Savings Plan Trust. The fourplans are intended to operate as qualified tuition programs,pursuant to Section 529 of the U.S. Internal Revenue Code.

    This Program Disclosure Statement describes only accounts heldthrough the Plan. The other plans in the Nebraska EducationalSavings Plan Trust may offer different investment advisors,different benefits, different fees, different costs, and salescommissions, if any, which may be more or less than those relativeto accounts held in the Plan described in this Program DisclosureStatement. You can obtain information regarding the other plansin the Nebraska Educational Savings Plan Trust by contacting theNebraska State Treasurer at (402) 471-2455, or by visiting theNebraska State Treasurer’s website at treasurer.nebraska.gov.

    Accounts in the Plan have not been registered with the Securitiesand Exchange Commission (the “SEC”) or with any statesecurities commission pursuant to exemptions from registrationavailable for securities issued by a public instrumentality of astate. Neither the SEC nor any state securities commission hasreviewed this Program Disclosure Statement. Accountsestablished in the Plan are not custodied at TD Ameritrade, Inc.(“TD Ameritrade”).

    No insurance and no guaranteesOpening an account in the Plan involves certain risks, includingpossible loss of the principal amount invested. These risks arehighlighted in the Section of the Program Disclosure Statement,“Part 11 – Certain Risks to Consider.”

    Accounts in the Plan are not guaranteed or insured by theFederal Deposit Insurance Corporation (FDIC), the State ofNebraska, the Nebraska Investment Council, the NebraskaState Treasurer, the Nebraska State Investment Officer, FirstNational Bank of Omaha or its authorized agents or theiraffiliates, TD Ameritrade or TD Ameritrade InvestmentManagement, LLC (“TDAIM”) or their authorized agents oraffiliates, or any other federal or state entity or person. The

    value of your account may vary depending on marketconditions, the performance of the Investment Options youselect, timing of purchases, and fees. The value of youraccount could be more or less than the amount you contributeto your account. In short, you could lose money. Accountowners should periodically assess, and if appropriate, adjusttheir investment choices with their time horizon, risk toleranceand investment objective in mind.

    Investments in the Goldman Sachs Financial SquareSM

    Government Money Market Individual Investment Option are notbank deposits and are not insured by the FDIC.

    Participation in the Plan does not guarantee that contributionsand the investment earnings, if any, will be adequate to coverfuture tuition and other qualifying post-high school educationexpenses (“Qualified Higher Education Expenses”) or that aBeneficiary will be admitted to or permitted to continue to attendan accredited college or university or other eligible educationalinstitution (an “Eligible Educational Institution”).

    For use only for Qualified Higher Education ExpensesThe Plan is intended to be used only to invest toward QualifiedHigher Education Expenses. The Plan and any tax informationcontained in this Program Disclosure Statement are not intendedto be used, nor should it be used, by any taxpayer for the purposeof evading federal or state taxes or tax penalties. Taxpayers maywish to seek tax advice from an independent tax advisor based ontheir own particular circumstances.

    Nebraska state tax deductionContributions by an account owner who files a Nebraska stateincome tax return, including the principal and earnings portions ofrollovers from another qualified college savings plan not issued bythe State of Nebraska, are deductible in computing the accountowner’s Nebraska taxable income for Nebraska income taxpurposes in an amount not to exceed $10,000 ($5,000 for marriedtaxpayers filing separate returns) in the aggregate for allcontributions to all accounts within the Trust in any taxable year.Contributions by a custodian of an UGMA or UTMA account whois also the parent or guardian of the Beneficiary of an UGMA orUTMA account may claim this deduction. See “Part 15 – Federaland State Tax Considerations” for important additionalinformation about state tax benefits.

    Taxpayers and residents of other statesInvestors should consider before investing whether their ortheir beneficiary’s home state offers any state tax or otherstate benefits such as financial aid, scholarship funds, andprotection from creditors that are only available forinvestments in such state’s qualified tuition program andshould consult their tax advisor, attorney and/or other advisorregarding their specific legal, investment or tax situation.

    Privacy PolicyExcept as otherwise required or permitted by law, any informationregarding a TD Ameritrade 529 College Savings Plan accountowner or Beneficiary will not be shared with anyone other than the..

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    2

  • account owner, an authorized representative, or those employeesand/or service providers who access such information to provideservices to the account owner or Beneficiary.

    Conflicts with Applicable LawThis Program Disclosure Statement is for informational purposesonly. In the event of any conflicts between the description of thePlan contained herein and any requirement of federal or Nebraskalaw applicable to matters addressed herein, such legalrequirement would prevail over this Program DisclosureStatement and Participation Agreement.

    Information is Subject to ChangeStatements contained in this Program Disclosure Statement thatinvolve estimates, forecasts, or matters of opinion, whether or notexpressly so described herein, are intended solely as such and arenot to be construed as representations of fact or guarantee offuture performance.

    Not an Offer to SellThis Program Disclosure Statement does not constitute an offer tosell or the solicitation of an offer to buy, nor shall there be anysale of a security described in this Program Disclosure Statementby any person in any jurisdiction in which it is unlawful for suchperson to make an offer, solicitation, or sale.

    This Program Disclosure Statement is designed to comply withthe College Savings Plans Network Disclosure Principles,Statement No. 6, adopted on July 1, 2017. You shouldcarefully read and understand this Program DisclosureStatement. Please keep this Program Disclosure Statement forfuture reference.

    This Program Disclosure Statement is dated November 18, 2019.

    IMPORTANT LEGAL INFORMATION

    THE TD AMERITRADE 529 COLLEGE SAVINGS PLAN AND ITSAUTHORIZED AGENTS OR AFFILIATES MAKE NOREPRESENTATIONS REGARDING THE SUITABILITY OF THEINVESTMENT OPTIONS DESCRIBED IN THIS PROGRAMDISCLOSURE STATEMENT FOR ANY PARTICULAR INVESTOR.OTHER TYPES OF INVESTMENTS AND OTHER TYPES OFCOLLEGE SAVINGS VEHICLES MAY BE MORE APPROPRIATEDEPENDING ON YOUR PERSONAL CIRCUMSTANCES. YOUSHOULD CONSULT YOUR TAX ADVISOR OR INVESTMENTADVISOR FOR MORE INFORMATION.

    NO BROKER, DEALER, REGISTERED REPRESENTATIVE,SALESPERSON OR OTHER PERSON HAS BEEN AUTHORIZEDTO GIVE ANY INFORMATION OR TO MAKE ANYREPRESENTATIONS OTHER THAN THOSE CONTAINED IN THISPROGRAM DISCLOSURE STATEMENT, AND, IF GIVEN ORMADE, SUCH OTHER INFORMATION OR REPRESENTATIONSMUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZEDBY THE TD AMERITRADE 529 COLLEGE SAVINGS PLAN,TD AMERITRADE, TDAIM, FIRST NATIONAL BANK OF OMAHA,THE STATE OF NEBRASKA, THE NEBRASKA INVESTMENTCOUNCIL OR THE NEBRASKA STATE TREASURER. THEINFORMATION IN THIS PROGRAM DISCLOSURE STATEMENTIS SUBJECT TO CHANGE WITHOUT NOTICE, AND NEITHERDELIVERY OF THIS PROGRAM DISCLOSURE STATEMENT NORANY SALE MADE HEREUNDER SHALL, UNDER ANYCIRCUMSTANCES, CREATE ANY IMPLICATION THAT THEREHAS BEEN NO CHANGE IN THE AFFAIRS OF THETD AMERITRADE 529 COLLEGE SAVINGS PLAN SINCE THEDATE OF THIS DOCUMENT.

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    3

  • SUMMARY OF KEY FEATURES AND REFERENCE GUIDE

    This section is intended to provide a summary of key features of the Plan. Before investing you should read and understand thecomplete detailed information contained in this Program Disclosure Statement and Participation Agreement. The capitalized terms in“Description” are defined in Part 17 – Glossary.

    Issuer: Nebraska Educational Savings Plan Trust

    Trustee: Nebraska State Treasurer

    Investment Oversight: Nebraska Investment Council

    Program Manager: First National Bank of Omaha

    Distributor/Underwriter: First National Capital Markets, Inc.First National Capital Markets and First National Bank of Omaha are affiliated companies.

    Sub-Administrator: TD Ameritrade, Inc.

    Portfolio Consultant: TD Ameritrade Investment Management, LLC

    Contact Information TD Ameritrade 529 College Savings Plan Phone: 877.408.4644

    If a retail client: P.O. Box 30278Omaha, NE 68103-1378

    8:00 a.m. to 8:00 p.m. Central Time Mondaythrough Friday

    Web: www.tdameritrade.com/collegesavings

    Plan Structure

    Topic Description Reference PageNebraska State IncomeTax Benefits

    • Contributions by account owners, and custodians of an UGMA or UTMAaccount where the custodian is the parent or guardian of the Beneficiary ofan UGMA or UTMA account, and rollovers by account owners may bedeductible up to $10,000 per tax return ($5,000 if married filing separately).

    • Earnings grow free from Nebraska state income tax• The earnings portion of a Qualified Withdrawal is exempt from Nebraska

    income tax• The earnings and principal portions of a rollover into the TD Ameritrade 529

    College Savings Plan from another qualified 529 plan are exempt fromNebraska income tax.

    11, 56-57

    Federal Tax Benefits • Contributions are not deductible for federal income tax purposes• Earnings grow tax-deferred from federal income tax• No federal income tax on Qualified Withdrawals• For federal gift and estate tax purposes, contributions are generally

    considered completed gifts to the Beneficiary.

    53-57

    No Guarantees • There are no guarantees that contributions and the investment earnings, ifany, will be adequate to cover future tuition and other higher educationexpenses or that a Beneficiary will be admitted to or permitted to continueto attend an Eligible Educational Institution.

    • Investments in the TD Ameritrade 529 College Savings Plan are notguaranteed or insured by the FDIC, the State of Nebraska, the NebraskaInvestment Council, the Nebraska State Treasurer, First National Bank ofOmaha or its authorized agents or their affiliates, or TD Ameritrade, TDAIM,or their authorized agents or affiliates, or any other federal or state entity orperson.

    • The value of your account could be more or less than the amount youcontribute to your account. In short, you could lose money.

    2, 12, 39

    Enrollment Form • Available through your financial advisor• Download from www.tdameritrade.com/collegesavings

    13

    Account Ownership • Individuals, trusts, certain entities and custodial accounts• Must have a Social Security or taxpayer identification number and a U.S.

    residential street address• No joint account ownership

    13-16

    4

  • Topic Description Reference PageBeneficiary • Must have a Social Security or taxpayer identification number

    • Does not need to have a Nebraska or U.S. address• Can be changed at any time to another Member of the Family

    17, 54, 55

    Contributions • Contributions can be made by anyone but account owner retains ownershipand control of the account and its assets

    • Can be made online, automatically contributed from a checking or savingsaccount; by check; wire transfer; payroll deduction; or electronic fundstransfer

    • No contribution minimum• Maximum Contribution Limit of $400,000 per Beneficiary for all accounts for

    the same Beneficiary in all plans administered by the Nebraska StateTreasurer. Assets can grow beyond $400,000.

    18-22

    Investment Options • 2 Age-Based Investment Options (Core, Socially Aware)• 10 Static Investment Options (Core Aggressive, Core Growth, Core

    Moderate Growth, Core Moderate, Core Conservative, Socially AwareAggressive, Socially Aware Growth, Socially Aware Moderate Growth,Socially Aware Moderate, Socially Aware Conservative)

    • 17 Individual Investment Options• Funds can be moved from one Investment Option to another twice per

    calendar year for all accounts administered by the Nebraska State Treasureror at any time when the Beneficiary is changed to a Member of the Family

    • Transferring assets among Plans administered by the Nebraska StateTreasurer is considered an Investment Option change.

    23-38

    Risk Factors Opening an account involves certain risks, including:

    • The risk that the value of your account may decrease, you could lose money,including the principal you invest;

    • The risk of state or federal tax law changes;• The risk of Plan changes, including changes in fees; and• The risk that an investment in the Plan may adversely affect the account

    owner or Beneficiary’s eligibility for financial aid or other benefits.

    39-41

    Performance • Performance of the Investment Options 42-45

    Plan Fees andExpenses

    • No annual account fee• No enrollment, investment change, transfer or withdrawal fee• Age-Based Investment Option Cost Range: 0.46% - 0.60%• Static Investment Option Cost Range: 0.47% - 0.60%• Individual Investment Option Cost Range: 0.34% - 0.88%

    These costs include a 0.25% Program Management Fee, a 0.05% TD Ameritradesub-administration fee, a 0.10% TDAIM portfolio consulting fee, and a 0.02%State Administration Fee to cover administrative costs of overseeing,distributing and marketing the Plan.

    46-50

    Distributions • Assets in the account can be used to pay for Qualified Higher EducationExpenses of the Beneficiary including: tuition, fees, room & board (withcertain limitations), books, supplies, equipment required for the enrollmentor attendance at an eligible post-secondary institution in the U.S. or abroadand the purchase of computer or peripheral equipment, computer software,or Internet access and related services, if such equipment, software, orservices are to be used primarily by the Beneficiary during any of the yearsthe Beneficiary is enrolled at an Eligible Educational Institution regardless ofwhether such technology or equipment is required by the EligibleEducational Institution. Computer software means any program designed tocause a computer to perform a desired function. Such term does not includeany database or similar item unless the database or item is in the publicdomain and is incidental to the operation of otherwise qualifying computersoftware. Computer software designed for sports, games, or hobbies is notincluded unless this software is predominantly educational in nature.

    • The earnings portion of withdrawals not used for qualified expensesgenerally are subject to federal income taxes, may be subject to anadditional 10% federal tax, and may be subject to state or local taxes.

    51-52

    5

  • Topic Description Reference Page

    Rollovers and Transfers • Funds can be rolled over from another 529 plan to this Plan or from this Planto another 529 plan once every 12 months for the same Beneficiary withoutbeing subject to federal tax.

    • Funds can be rolled over from this Plan to an ABLE account for the sameBeneficiary without being subject to federal tax.

    • A rollover to another Beneficiary who is a Member of the Family of thecurrent Beneficiary can take place at any time without federal income taxconsequences.

    • Nebraska state tax deductions are subject to recapture when a participationagreement is cancelled, the assets in an account are rolled over to anotherstate’s qualified tuition program or ABLE program, or when a Non-QualifiedWithdrawal is made.

    • Liquidated assets from Coverdell ESA accounts, UGMA/UTMA assets andcertain U.S. Savings Bonds can be transferred to the Plan at any time.Restrictions and tax considerations may apply.

    20, 52, 54

    6

  • TABLE OF CONTENTS

    PART 1 – OVERVIEW 10The Trust and the Plan 10The Program Manager 10Contributing to an account 10Investment Options 10Federal income tax benefits 10-11Nebraska state tax deduction 11Taxpayers and residents of other states 11

    PART 2 – LEGAL DESCRIPTION OF THE PLAN 12The Trust and Plan 12The Treasurer 12The Nebraska Investment Council 12The Program Manager 12No insurance and no guarantees 12The Plan is not a mutual fund 12

    PART 3 – OPENING AND MAINTAINING ANACCOUNT 13Who can open an account 13No limits on the number of accounts 13Restrictions 13Maximum limits on contributions 13Completing and submitting an Enrollment Form 13You can obtain an Enrollment Form by 13Required information 13Choosing an Investment Option 13Account ownership 13

    Individual account owner 13-14Change in ownership 14Trusted Contact 14Death or legal incapacity of the account owner andsuccessor account owner 14Custodial accounts 14Accounts owned by minors 15Entity-owned accounts 15Trust accounts 15Accounts for infants 15

    Maintaining and reviewing your account 15Program Manager’s right to terminate, freeze, suspend, orredeem your account 15Account opening error 15-16Documents must be in good order 16

    PART 4 – BENEFICIARIES 17Beneficiary 17One Beneficiary 17Infant Beneficiary 17Scholarship account Beneficiary 17UGMA or UTMA or minor-owned account Beneficiary 17Changing the Beneficiary 17Member of the Family 17Death of a Beneficiary 17

    PART 5 – CONTRIBUTING TO AN ACCOUNT 18Contributions 18Contribution restrictions 18No contribution minimums 18

    Limits on maximum contributions to an account 18Excess contributions 18Allocation of contributions 18Systematic Exchange Program 18Contributions by non-account owners 18-19Contribution methods 19Contributing electronically from your bank account 19

    Automatic Investment Plan (AlP) 19Electronic Funds Transfer (EFT) 19

    Checks 20Wire transfer 20Payroll deduction 20Rollover 20Coverdell Education Savings Account 20Redemptions from certain U.S. Savings Bonds 21Transfers within the Plan 21

    Transfer to another account owner 21Transfer to another Beneficiary 21Transferring accounts among Nebraska-issued 529qualified tuition plans 21Potential tax consequences of a transfer 21

    UGMA or UTMA accounts 21Transfers from a Upromise® by Sallie Mae® Account 21-22Contributions from Ugift® 22Contribution date 22Contribution pricing 22Contribution errors 22

    PART 6 – INVESTMENT OPTIONS OVERVIEW 23Investment Options 2329 Investment Options 23No investment direction 23Changing Investment Options 23

    PART 7 – AGE-BASED INVESTMENT OPTIONS 24Two Age-Based Investment Options 24Age-Based Core and Socially Aware Investment Options 24-25Description of the underlying investments 26

    PART 8 – STATIC INVESTMENT OPTIONS 27Ten Static Investment Options 27Core and Socially Aware Aggressive Static InvestmentOptions 27Core and Socially Aware Growth Static Investment Options 27Core and Socially Aware Moderate Growth StaticInvestment Options 27Core and Socially Aware Moderate Static InvestmentOptions 27-28Core and Socially Aware Conservative Static InvestmentOptions 28Description of the underlying investments 29

    PART 9 – INDIVIDUAL INVESTMENT OPTIONS 3017 Individual Investment Options 30

    PART 10 - DESCRIPTIONS OF THE UNDERLYINGINVESTMENTS 31DFA World ex-US Government Fixed Income 31Goldman Sachs Financial SquareSM Government MoneyMarket 31iShares Core S&P Small-Cap ETF 31

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    7

  • iShares Core S&P Total US Stock Market ETF 31iShares Core U.S. Aggregate Bond ETF 32iShares ESG MSCI EAFE ETF 32iShares ESG MSCI Emerging Markets ETF 32iShares ESG MSCI USA ETF 32MetWest Total Return Bond 33Nuveen ESG Small-Cap ETF 33State Street MSCI® ACWI ex USA Index 33State Street S&P 500® Index 33-34T. Rowe Price Large-Cap Growth 34VanEck Vectors JP Morgan EM LC Bond ETF 34Vanguard Emerging Markets Stock Index 34Vanguard Equity Income 34-35Vanguard Extended Market Index 35Vanguard FTSE Developed Markets ETF 35Vanguard FTSE Emerging Markets ETF 35-36Vanguard Real Estate Index 36Vanguard Russell 1000 Value Index 36Vanguard Russell 2000 Growth Index 36-37Vanguard Short-Term Bond ETF 37Vanguard Short-Term Bond Index 37Vanguard Short-Term Inflation-Protected Index 37Vanguard Total Bond Market Index 37-38Vanguard Total International Bond ETF 38Vanguard Total Stock Market Index 38

    PART 11 – CERTAIN RISKS TO CONSIDER 39Investment risks 39No insurance or guarantees 39Investment Options have certain risks 39

    Call risk 39Concentration risk 39Credit risk 39ETF risks 39Extension risk 39Foreign investment risk 39Index sampling risk 39Interest rate risk 39Investment style risk 40Issuer risk 40Management risk 40Market risk 40Prepayment risk 40Static Socially Aware portfolio risk 40

    Individual Investment Options are not as diversified as otherInvestment Options 40Program risks 40

    Possible changes to the TD Ameritrade 529 CollegeSavings Plan 40Limitation on investment selection 40Illiquidity of account 40Acceptance to an Eligible Educational Institution is notguaranteed 40Qualified Higher Education Expenses may exceed thebalance in your account 41Plan does not create Nebraska residency 41Laws governing 529 qualified tuition programs maychange 41

    Impact on the Beneficiary’s ability to receive financial aid 41Medicaid and other federal and state benefits 41

    PART 12 – PERFORMANCE 42No ownership in underlying investments 42Performance differences 42Customized Portfolio performance benchmarks 45

    PART 13 – PLAN FEES AND EXPENSES 46Program Management Fee 46Negative return 46TD Ameritrade sub-administration fee 46TDAIM portfolio consulting fee 46State Administration Fee 46Underlying investment fee 46Other account fees 46Fee structure tables 47-48Approximate cost of $10,000 investment 49-50

    PART 14 – DISTRIBUTIONS FROM AN ACCOUNT 51Requesting a distribution from an account 51Temporary withdrawal restrictions 51Systematic Withdrawal Program (SWP) 51Qualified Withdrawal 51Eligible Educational Institution 51Distribution of a Qualified Withdrawal 51Non-Qualified Withdrawals 52Exceptions to the federal penalty tax 52Refunds from Eligible Educational Institution 52Rollovers 52

    PART 15 – FEDERAL AND STATE TAXCONSIDERATIONS 53IRS Circular 230 Disclosure 53Qualified tuition program 53Federal tax information 53Qualified Withdrawals 53Qualified Higher Education Expenses 53-54Non-Qualified Withdrawal taxable 54Federal penalty tax on Non-Qualified Withdrawals 54Exceptions to penalty tax 54Rollovers 54Change of Beneficiary 54Earnings portion 54Earnings aggregation 54-55Claiming a loss 55Estate and gift tax 55

    Five-year election 55Change of Beneficiary 55

    Coordination with education tax credits 55-56Coverdell Education Savings Accounts (ESAs) 56Lack of certainty 56Nebraska state income tax deduction 56Recapture of Nebraska income tax deduction 56Nebraska state income tax 56-57

    PART 16 – OTHER CONSIDERATIONS 58Scholarships 58Contests 58Financial aid 58Bankruptcy 58Creditor protection 58Audits 58

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    8

  • PART 17 – GLOSSARY 59-60

    EXHIBIT A – PARTICIPATION AGREEMENT 61-63

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    9

  • PART 1 - OVERVIEW

    The Trust and the PlanThe Nebraska Educational Savings Plan Trust (the “Trust”),established on January 1, 2001, is designed to qualify as a tax-advantaged qualified tuition program under Section 529 of theInternal Revenue Code of 1986, as amended (the “Code”).Section 529 permits states and state agencies to sponsor qualifiedtuition programs under which you can contribute to an accountfor the benefit of any individual, including you (a “Beneficiary”).The Trust has a series of four plans, the TD Ameritrade 529College Savings Plan, the Nebraska Educational Savings PlanTrust Direct College Savings Plan (“NEST Direct Plan”), theNebraska Educational Savings Plan Trust Advisor College SavingsPlan (the “NEST Advisor Plan”), and the State Farm 529 SavingsPlan.

    The TD Ameritrade 529 College Savings Plan provides aconvenient and tax-advantaged way to invest toward QualifiedHigher Education Expenses. Each account in the Plan representsan interest in the Trust and holds units of one or more underlyinginvestment options (each an “Investment Option”) in the Plan.

    The Nebraska State Treasurer acts as trustee for the Trust (the“Trustee”) and is responsible for the overall administration of thePlan.

    The Nebraska Investment Council is responsible for theinvestment of the money in the Trust and the selection of allInvestment Options.

    The Program ManagerThe Trustee entered into a Program Management Agreementwith First National Bank of Omaha (the “Program Manager”). Theseven-year contract ending December 17, 2017 was extended foran additional three-year term ending December 17, 2020. Underthis contract, the Program Manager provides day-to-dayadministrative and marketing services to the Plan. The ProgramManager is a subsidiary of First National of Nebraska, Inc., thelargest privately owned banking company in the United States.For more than 160 years, First National Bank of Omaha hasdedicated itself to providing quality products and superiorservice. First National of Nebraska, Inc. and its affiliates have$23 billion in managed assets and 5,000 employee associates.

    The Program Manager has entered into a distribution agreementwith First National Capital Markets, Inc. (the “Distributor”). TheDistributor and Program Manager are affiliated companies. FirstNational Capital Markets is the underwriter.

    The Program Manager has entered into a sub-administrationagreement with TD Ameritrade. Under this contract, TD Ameritradewill assist in certain marketing and administrative services for thoseinterested in investing in the TD Ameritrade 529 College SavingsPlan. The same parties have entered into a portfolio consultingagreement with TDAIM. Under this contract, TDAIM will act asportfolio consultant for the Plan.

    Contributing to an accountThe Plan is open to residents of any state, not just residents ofNebraska. As long as you have a Social Security number ortaxpayer identification number, and a residential street address inthe United States (including Puerto Rico, Guam or the U.S. VirginIslands), you may open and contribute to an account regardless ofyour income or the age of the Beneficiary.

    While there are no limits on the number of accounts an accountowner can own, no additional contributions may be made for thebenefit of a particular Beneficiary when the fair market value of allaccounts owned by all account owners within the Trust for thatBeneficiary exceeds $400,000 (the “Maximum ContributionLimit”). If, however, the market value of such accounts falls belowthe Maximum Contribution Limit, additional contributions will beaccepted. The $400,000 Maximum Contribution Limit applies toall accounts for the same Beneficiary in all plans administered bythe Nebraska State Treasurer, including the NEST Advisor Plan,the NEST Direct Plan, the TD Ameritrade 529 College SavingsPlan, and the State Farm 529 Savings Plan.

    Investment OptionsThe Plan has 29 Investment Options from which to choose:two Age-Based Investment Options, ten Static InvestmentOptions, and 17 Individual Investment Options. The Age-BasedInvestment Options and Static Investment Options invest inspecified allocations of domestic equity, real estate, internationalequity, international bond, fixed income and money market funds.The Individual Investment Options invest in a single investmentfund. Account owners do not own shares of the underlying funds.See “Part 6 – Investment Options Overview.” The InvestmentOptions have been reviewed and approved by the NebraskaInvestment Council.

    You can choose an Investment Option that is tailored to meetyour investment risk and return profile.

    Federal income tax benefitsInvestment earnings on your contributions accumulate on a tax-deferred basis while in an account. Qualified Withdrawals areexempt from federal and Nebraska state income tax if they areused to pay for the Beneficiary’s Qualified Higher EducationExpenses. Qualified Higher Education Expenses include aBeneficiary’s tuition, fees, books, supplies, equipment requiredfor the enrollment or attendance of the Beneficiary at an EligibleEducational Institution and the purchase of computer orperipheral equipment, computer software, or Internet access andrelated services, if such equipment, software, or services are to beused primarily by the Beneficiary during any of the years theBeneficiary is enrolled at an Eligible Educational Institutionregardless of whether such technology or equipment is requiredby the Eligible Educational Institution. Computer software meansany program designed to cause a computer to perform a desiredfunction. Such term does not include any database or similar itemunless the database or item is in the public domain and isincidental to the operation of otherwise qualifying computersoftware. Computer software designed for sports, games, or..

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    10

  • hobbies is not included unless this software is predominantlyeducational in nature. For Beneficiaries enrolled at an EligibleEducational Institution on at least a halftime basis, theBeneficiary’s room and board expenses also qualify as QualifiedHigher Education Expenses.

    The earnings portion (if any) of a Non-Qualified Withdrawal will betreated as ordinary income to the recipient and may also besubject to an additional 10% federal tax, as well as partialrecapture of any Nebraska state income tax deduction previouslyclaimed.

    Nebraska state tax deductionContributions by an account owner who files a Nebraska stateincome tax return, including the principal and earnings portions ofrollovers from another qualified college savings plan not issued bythe State of Nebraska, are deductible in computing the accountowner’s Nebraska taxable income for Nebraska income taxpurposes in an amount not to exceed $10,000 ($5,000 for marriedtaxpayers filing separate returns) in the aggregate for allcontributions to all accounts within the Trust in any taxable year.Contributions by a custodian of an UGMA or UTMA account whois also the parent or guardian of the Beneficiary of an UGMA orUTMA account may claim this deduction. See “Part 15 – Federaland State Tax Considerations” for important additionalinformation about state tax benefits.

    Taxpayers and residents of other statesInvestors should consider before investing whether their or theirbeneficiary’s home state offers any state tax or other statebenefits such as financial aid, scholarship funds, and protectionfrom creditors that are only available for investments in suchstate’s qualified tuition program and should consult their taxadvisor, attorney and/or other advisor regarding their specificlegal, investment or tax situation.

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    11

  • PART 2 - LEGAL DESCRIPTION OF THE PLAN

    The Trust and PlanThe TD Ameritrade 529 College Savings Plan is one of fourcollege savings plans issued by the Nebraska Educational SavingsPlan Trust. The Plan is authorized by the State of Nebraska and isdesigned to qualify as a tax-advantaged qualified tuition programunder Code Section 529. The primary purpose of the Trust andPlan is to promote and enhance the affordability and accessibilityof higher education by offering a convenient and tax-advantagedway to invest toward the cost of tuition and other Qualified HigherEducation Expenses. Amounts contributed to the Plan areinvested in the Trust. The Trust holds the assets of the Plan,including all contributions made to accounts established byaccount owners.

    The TreasurerThe Plan is overseen by the Nebraska State Treasurer, as Trusteeof the Trust. As Trustee, the Nebraska State Treasurer isresponsible for the overall administration of the Plan. The Plan issubject to the rules and regulations established by the NebraskaState Treasurer. A copy of these rules and regulations is availableupon request to the Distributor.

    The Nebraska Investment CouncilThe Nebraska Investment Council is responsible for investmentoversight for the Trust and the Plan. The Nebraska InvestmentCouncil is responsible for the investment of money in the Trust andthe selection of all Investment Options offered through the Plan.

    The Program ManagerThe Nebraska State Treasurer, as Trustee, has engaged theProgram Manager to administer and market the Plan on behalfof the Trustee. The Program Manager works with the Treasurerto provide day-to-day administrative and marketing services tothe Plan. The Distributor works with the Program Manager andTD Ameritrade to assist in sub-administration and marketing thePlan accounts. The Program Manager and the NebraskaInvestment Council work with TDAIM as a portfolio consultant.

    No insurance and no guaranteesInvestments in the TD Ameritrade 529 College Savings Planare not guaranteed or insured by the FDIC, the State ofNebraska, the Nebraska Investment Council, the NebraskaState Treasurer, First National Bank of Omaha or itsauthorized agents or their affiliates, TD Ameritrade, TDAIM ortheir authorized agents or affiliates, or any other federal orstate entity or person.

    The value of your account may vary depending on marketconditions, the performance of the Investment Options youselect, timing of purchases, and fees. The value of youraccount could be more or less than the amount you contributeto your account. In short, you could lose money.

    The Plan is not a mutual fundNeither the Plan nor your account is a mutual fund, and you donot own shares in the underlying investments held in theInvestments Options offered through the Plan. Investments in thePlan are considered municipal fund securities, which are notregistered with the SEC or any state securities commission.

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    12

  • PART 3 - OPENING AND MAINTAINING ANACCOUNT

    Who can open an accountAn account may be opened by an individual, certain entities(including a partnership, corporation, estate or association that isdomiciled in the United States), a custodian under a state’sUGMA or UTMA statute, or a trust to invest toward the QualifiedHigher Education Expenses of a Beneficiary. An account may alsobe established by a state or local government or a tax-exemptorganization described in Code Section 501(c)(3) as part of ascholarship program operated by the government or organizationwithout naming a specific beneficiary when the account isopened. Each account owner must have a Social Security numberor taxpayer identification number and a residential U.S. streetaddress.

    You may select multiple Investment Options for the account youopen for your Beneficiary when you complete the EnrollmentForm or at a later date. All Investment Options opened by you foryour Beneficiary will be placed into a single account.

    No limits on the number of accountsA single account can include different Investment Options for thesame Beneficiary. Separate accounts may be established for thesame Beneficiary by different account owners. An account ownermay open multiple accounts for different Beneficiaries. Joint ormultiple account owners are not permitted.

    RestrictionsWhen an account owner or the address is changed on an account,there is a 10-business-day hold before a withdrawal can be made.A withdrawal request must be signature guaranteed if the requestis within 10 business days of the change to have the withdrawalreleased before the hold period expires.

    Maximum limits on contributionsWhile there are no limits on the number of accounts an accountowner can own, no additional contributions may be made for thebenefit of a particular Beneficiary when the fair market value of allaccounts owned by all account owners within the Trust for thatBeneficiary equals the $400,000 Maximum Contribution Limit. If,however, the fair market value of such accounts falls below theMaximum Contribution Limit, additional contributions will beaccepted. The Maximum Contribution Limit applies to allaccounts for the same Beneficiary in all plans administered by theNebraska State Treasurer, including the TD Ameritrade 529College Savings Plan, the NEST Direct Plan, the NEST AdvisorPlan, and the State Farm 529 Savings Plan.

    Completing and submitting an Enrollment FormTo open an account, you must complete an Enrollment Form andreturn it to:

    For retail clients:TD Ameritrade 529 College Savings PlanP.O. Box 30278Omaha, NE 68103-1378

    For clients working with a financial advisor, return the enrollmentform to your financial advisor or speak with your financial advisorfor mailing instructions.

    By completing and submitting an Enrollment Form, you agree tobe bound by the terms and conditions of the Program DisclosureStatement and Participation Agreement, which govern your rights,benefits and obligations as an account owner. The current versionof the Participation Agreement is included as Exhibit A to thisProgram Disclosure Statement.

    Any amendments to the Code, Nebraska law, or regulationsrelating to the Plan may automatically amend the terms of yourParticipation Agreement, and the Trustee may amend yourParticipation Agreement at any time and for any reason by givingyou written notice of such amendments.

    You can obtain an Enrollment Form by:For retail clients:Enrolling online at www.tdameritrade.com/collegesavingsDownloading from www.tdameritrade.com/collegesavings

    Writing the TD Ameritrade 529 College Savings Plan at:P.O. Box 30278Omaha, NE 68103-1378

    Calling the TD Ameritrade 529 College Savings Plan at:877.408.4644 8:00 a.m. – 8:00 p.m. Central Time Monday – Friday

    For clients working with a financial advisor:Contact your financial advisor.

    Required informationThe Federal U.S.A. Patriot Act requires the Program Manager toobtain, verify, and record information that identifies each personwho opens an account. You are required to provide the accountowner’s name, street address, date of birth, citizenship status, andSocial Security or taxpayer identification number. Your accountwill not be opened if you do not provide the Program Managerwith this information. If the Program Manager is unable to verifyyour identity, it reserves the right to close the account at the nextcalculated unit price following such determination, at your risk, ortake other steps it deems reasonable.

    Choosing an Investment OptionYou must select one or more Investment Options in an accountfor your Beneficiary when you open an account or at a later date.All Investment Options selected by you for your Beneficiary will beplaced into a single account. See “Part 6 – Investment OptionsOverview.”

    Account ownershipIndividual account owner - An individual account owner who hasreached the age of majority with a valid Social Security number ortaxpayer identification number and a residential street address inthe United States, Puerto Rico, Guam or the U.S. Virgin Islandscan open an account. The account owner must register theaccount with a U.S. residential street address when an account is..

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    13

  • opened but may also designate a U.S. Post Office box to receivemail. There may only be one account owner – joint or multipleaccount ownership is not allowed. If an account owner changeshis or her address on his or her account from a U.S. address to aforeign address contributions to the account will no longer beallowed.

    Change in ownership - You may change ownership of youraccount to another individual or entity that is eligible to be anaccount owner. When you transfer ownership of your account, youare not required to change the Beneficiary. A change ofownership of an account will only be effective if the assignment isirrevocable and transfers all ownership rights. To be effective, atransfer of ownership of your account also requires the newaccount owner to complete and execute an Enrollment Form (andthereby enter into a Participation Agreement), and an AccountInformation Change Form completed by the current accountowner. You should consult your tax advisor regarding thepotential gift and/or generation-skipping transfer taxconsequences of changing ownership of your account.

    Trusted Contact - You may designate someone you trust who is atleast 18 years of age (a “Trusted Contact”) to act as a resource ifwe lose contact with you or believe you and/or your assets are atrisk. By choosing to provide information about a Trusted Contact,you authorize us to contact this person and disclose informationabout your account to that person in the following circumstances:to address possible financial exploitation; to confirm the specificsof your current contact information, your health status, or theidentity of any legal guardian, executor, trustee or holder of apower of attorney; or as otherwise permitted by FINRA Rule 2165(Financial Exploitation of Specified Adults). Designating a TrustedContact does not mean you are authorizing him or her to act onyour account. Instead, he or she can be a resource to protect youraccount from suspected fraud or if you are unable to speak foryourself. We will not release information beyond what is necessaryto protect you and/or your assets from potential harm. Todesignate or change a Trusted Contact please call the Plan.

    Death or legal incapacity of the account owner and successoraccount owner - On your Enrollment Form, you may designate asuccessor account owner to take ownership of your account in theevent of your death or legal incapacity. A successor accountowner can be an individual, entity or trust but cannot be a minor.If you have already established an account, you may designate asuccessor account owner or change your designation bycompleting the appropriate form which may be obtained bysubmitting a form available on the Plan’s website or by calling thePlan. If you do not designate a successor account owner, then theBeneficiary, rather than your estate, shall be named the accountowner.

    Before the successor account owner will be permitted to transactbusiness in respect to your account, he or she will be required toprovide a certified copy of the death certificate, in the case of thedeath of the account owner, or an acceptable medical

    authorization or court order in the case of the incapacity of theaccount owner, and execute a new Enrollment Form, acceptingthe terms of the then-current Program Disclosure Statement andParticipation Agreement. If the new account owner is an entity ortrust, appropriate documentation may be required to accompanythe Enrollment Form.

    Custodial accounts - If a custodian holding assets under a state’sUGMA or UTMA statute establishes an account, the minor forwhose benefit the custodian holds the UGMA or UTMA accountassets must be designated as the account owner and Beneficiaryof the account. The custodian must complete the EnrollmentForm and assume account owner responsibilities until theBeneficiary reaches the age of majority under the applicableUGMA or UTMA statute, at which time the Beneficiary will assumeaccount owner responsibilities. At the time the Beneficiaryreaches the age of majority, the custodian must submit asignature guaranteed letter of authorization, an Enrollment Formaccepting the terms of the then-current Program DisclosureStatement and Participation Agreement, and a certified copy ofthe Beneficiary’s birth certificate indicating that the Beneficiaryhas reached the age of majority.

    The custodian must liquidate the assets from the current UGMAor UTMA account (which may be subject to federal and stateincome taxes) for deposit into the Plan’s custodial account.Money in a custodial account is irrevocable and is a permanentgift to the Beneficiary. Money in a custodial account can only beused for the Beneficiary’s qualified expenses. Any earningsportion of any Non-Qualified Withdrawal made before theBeneficiary reaches the age of majority will be included in theincome of the Beneficiary.

    The custodian will not be permitted to change the account owneror Beneficiary of a custodial account or transfer assets to anotherBeneficiary. The custodian will be required to certify on awithdrawal form that the withdrawal is for the benefit of theBeneficiary. Any contributions to a custodial account holdingUGMA or UTMA funds will be subject to these restrictions.

    A custodian can be changed on a custodial account by providingsupporting documentation in writing from the current custodianor submitting a valid court order appointing another person asthe custodian. The new custodian must complete an EnrollmentForm available by downloading a form from the Plan’s website, orby calling the Plan.

    None of the Program Manager or its agents or their affiliates,TD Ameritrade, TDAIM or their agents or their affiliates, theTrustee, the Nebraska Investment Council, or the State ofNebraska will assume responsibility to ensure, or will incur anyliability for failing to ensure, that a custodian applies assets heldunder an UGMA or UTMA custodianship for proper purposes.Liquidating an UGMA or UTMA account for deposit into the Planmay trigger tax consequences. Custodians should discuss the taximplications with their tax advisors before transferring funds to thePlan...

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    14

  • Accounts owned by minors - As of February 1, 2016 a minor mayonly be named an account owner in the event of the death orlegal incapacity of the account owner in which a successoraccount owner had not been designated for that account. If at thetime of the account owner’s death or legal incapacity theBeneficiary is a minor, the minor will become both the accountowner and the Beneficiary of the account. The parent or legalguardian of the minor Beneficiary must provide a letter ofinstruction, a certified copy of the account owner’s deathcertificate or other proof of legal incapacitation, and execute anew Enrollment Form, accepting the terms of the then-currentProgram Disclosure Statement and Participation Agreement.

    For all minor-owned accounts opened prior to or after February 1,2016, the parent or legal guardian must assume account ownerresponsibilities until the Beneficiary reaches the age of majority asdesignated by his or her residential state. At the time theBeneficiary reaches the age of majority, the parent or legalguardian or the Beneficiary must submit a signature guaranteedletter of authorization, an Enrollment Form signed by theBeneficiary who has reached the age of majority accepting theterms of the then-current Program Disclosure Statement andParticipation Agreement, and a certified copy of the Beneficiary’sbirth certificate indicating that the Beneficiary has reached theage of majority.

    As with UGMA or UTMA accounts, the parent or guardian will notbe permitted to change the account owner or Beneficiary of theaccount or transfer assets to another Beneficiary. The parent orguardian will be required to certify on a withdrawal form that thewithdrawal is for the benefit of the Beneficiary.

    Entity-owned accounts - If the account owner is a partnership,corporation or other entity, the entity must provide a validtaxpayer identification number, and the name and title of acontact person authorized by the entity to act in its capacity. Theentity must be domiciled in the U.S. including Puerto Rico, Guam,or the U.S. Virgin Islands. The entity may be required to provideappropriate documentation to accompany the Enrollment Form.

    When signing Plan forms or conducting a transaction, the personauthorized to act on behalf of the entity will certify that he or shecontinues to be authorized to act on behalf of the entity. TheProgram Manager will presume that any entity documentsprovided are valid, effective to bind the entity, and will have noliability for defective documentations submitted by the authorizedcontact person.

    Trust accounts - If the account owner is a trust, the trustee shouldconsult with his or her legal and tax advisors before establishingthe account. This Program Disclosure Statement does not attemptto address the income or transfer tax consequences ofinvestments in the Plan made by a trust or the propriety of suchan investment under state trust law. The trustee may be requiredto submit documents when an account is opened. Call the Planfor more information.

    Accounts for infants - All Beneficiaries must have a Social Securitynumber or taxpayer identification number. If you have an infant,you cannot open an account until you obtain a Social Securitynumber or taxpayer identification number for that infant.

    Maintaining and reviewing your accountThe Plan will send you confirmation statements each time financialtransactions are made (with the exception of age-band rolls, asystematic contribution through AlP, payroll deduction, orsystematic exchanges) as well as when there is a change to youraccount registration. For quarters one, two and three, if therewere financial transactions during the quarter, the Plan will alsosend you a quarterly statement that indicates the current accountbalance and financial transactions made during the quarter. Forthe fourth quarter, the Plan will send all account owners an annualstatement that will include all financial transactions during theentire year. You can check your account balances, transactionhistory, and quarterly statements online or by calling the Plan.Contributors who are not account owners will not receive anynotification of a transaction nor will they have any right to theaccount or to receive information about the account. Accountowners can request that an interested party receive duplicatestatements.

    Program Manager’s right to terminate, freeze,suspend, or redeem your accountThe Program Manager can terminate the account if the accountowner provided false or misleading information or if the accountreaches a zero balance. In addition, if there has been no activity inthe account and the Program Manager or its designee has notbeen able to contact the account owner for a period of at leastfive years, the account may be considered abandoned underNebraska state law. If the account is considered abandoned, itmay, without authorization from the account owner, betransferred to the Nebraska State Treasurer’s Unclaimed PropertyDivision. The Program Manager can freeze the account orsuspend account services if the Program Manager reasonablybelieves there is a dispute regarding the assets in the account,that fraudulent transactions may have occurred, upon notificationof the death of an account owner, until the Program receivesrequired documentation in good order and reasonably believes itis lawful to transfer account ownership to the successor accountowner, or if there is suspicious conduct relating to the account.

    Per FINRA Rule 2165 Financial Exploitation of Specified Adults,the Plan may place a temporary hold on a disbursement of fundsor securities from the account of a specified adult if the Plan hasreason to believe that financial exploitation has occurred, isoccurring or has been occurring. A “Specified Adult” is (a) anatural person age 65 and older; or (b) a natural person age 18and older who the Plan believes has a mental of physicalimpairment that renders the individual unable to protect his or herown interests.

    Account opening errorIf the account owner believes that a new account’s InvestmentOption was not what the account owner indicated on the..

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    15

  • Enrollment Form, or if the Beneficiary’s age is incorrect, the Planmust be notified within 60 calendar days from the date theaccount opening confirmation was mailed. If you do not notify thePlan within 60 calendar days, you will be considered to haveapproved the information in the confirmation and to havereleased the State of Nebraska, the Nebraska Investment Council,the Trustee, the Nebraska State Investment Officer, the ProgramManager or its authorized agents or their affiliates, andTD Ameritrade, TDAIM and their authorized agents or affiliates, ofresponsibility for all matters covered by the confirmation. After 60calendar days, the assets will remain in the Investment Optionuntil withdrawn or when the account owner requests anInvestment Option change. The Program Manager may waive the60-calendar-day notice requirement at its sole discretion in theevent that an error has occurred.

    Documents must be in good orderIn order to timely process any transaction, such as opening anaccount in or processing a contribution to the Plan, all necessarydocuments must be in good order. Documents are in good orderwhen they are fully, properly and accurately completed, executed(where necessary) and received by the Program Manager or itsauthorized agents for processing. For example, in order for anEnrollment Form or a contribution to be received in good order,certain information must be provided. Where information ismissing, an Enrollment Form or a contribution is not received ingood order and processing may be delayed or the Form or thecontribution may be returned to you.

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    16

  • PART 4 - BENEFICIARIES

    BeneficiaryThe Beneficiary is the individual for whom Qualified HigherEducation Expenses are expected to be paid from the account.Any individual with a valid Social Security number or taxpayeridentification number can be a Beneficiary. A Beneficiary can beof any age and need not be a resident of the State of Nebraska orof the United States.

    An account owner does not have to be related to the Beneficiary.However, if you change the Beneficiary in the future, the newBeneficiary must be a Member of the Family of the formerBeneficiary in order to avoid a taxable transaction.

    One BeneficiaryEach account may have only one Beneficiary, but differentaccount owners may establish different accounts for the sameBeneficiary. An account owner may also name himself or herself asthe Beneficiary.

    Infant BeneficiaryAll Beneficiaries must have a Social Security number or taxpayeridentification number. An account cannot be opened until youcan provide the Plan with the infant’s Social Security or taxpayeridentification number.

    Scholarship account BeneficiaryIf an account is established by a state or local government (oragency or instrumentality thereof) or an organization described inCode Section 501(c)(3) as part of a scholarship program operatedby the government or organization, the Beneficiary is not requiredto be identified on the Enrollment Form at the time the account isestablished. The government or organization shall designate theBeneficiary prior to any distributions for Qualified HigherEducation Expenses from the account.

    UGMA or UTMA or minor-owned account BeneficiaryIf the source of contributions to an account was a state UGMA orUTMA funds, or if the account is owned by a minor, theBeneficiary of the account may not be changed even if the newBeneficiary is a Member of the Family of the original Beneficiary ofthe account.

    Changing the BeneficiaryExcept as set forth below, an account owner may change theBeneficiary at any time without adverse federal income taxconsequences if the Beneficiary is a Member of the Family or theformer Beneficiary. Upon a change in Beneficiary, the accountowner may also change the Investment Options in which theaccount is invested.

    However, upon a change of Beneficiary, the existing assets plusthe assets moved to the new Beneficiary’s account cannot resultin the total account values in all accounts in the Trust for the newBeneficiary to exceed the Maximum Contribution Limit.

    If the new Beneficiary is not a Member of the Family of the formerBeneficiary, then the change is treated as a Non-QualifiedWithdrawal that is subject to federal and state taxes and anadditional 10% federal tax on any earnings, as well as partialrecapture of any Nebraska state income tax deduction previouslyclaimed.

    To change the Beneficiary of an account, retail clients can visit thePlan’s website at www.tdameritrade.com/collegesavings todownload the appropriate form, change the Beneficiary online or,for clients working with a financial advisor, by contacting thefinancial advisor.

    An account owner may change the Beneficiary at any time withoutadverse federal income tax consequences if the new Beneficiary isa Member of the Family of the former Beneficiary.

    A Beneficiary cannot be changed on an UGMA or UTMA orminor-owned account.

    Member of the FamilyA Member of the Family is defined as anyone who is related tothe Beneficiary in one of the following ways:

    • A son or daughter, or a descendant of either;• A stepson or stepdaughter;• A brother, sister, stepbrother or stepsister;• The father or mother, or an ancestor of either;• A stepfather or stepmother;• A son or daughter of a brother or sister;• A brother or sister of the father or mother;• A son-in-law, daughter-in-law, father-in-law, mother-in-law,

    brother-in-law or sister-in-law;• The spouse of the Beneficiary or the spouse of any of the

    foregoing individuals; or• A first cousin of the Beneficiary.

    For purposes of determining who is a Member of the Family, alegally adopted child or foster child of an individual is treated asthe child of such individual by blood. The terms “brother” and“sister” include half-brothers and half-sisters.

    Death of a BeneficiaryUpon the death of a Beneficiary, the account owner can changethe Beneficiary on the account, transfer assets to anotherBeneficiary who is a Member of the Family of the formerBeneficiary, or take a Non-Qualified Withdrawal. Some Non-Qualified Withdrawals following the death of the Beneficiary arenot subject to the additional 10% federal tax. See “Part 14 –Distributions from an Account.”

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    17

  • PART 5 - CONTRIBUTING TO AN ACCOUNT

    ContributionsAnyone can contribute to a TD Ameritrade 529 College SavingsPlan account but only the account owner can (1) control how theassets are invested and used, (2) designate a Beneficiary, and (3)claim tax benefits related to the account, regardless of whocontributed to it.

    Contribution restrictionsAll contributions must be cash-equivalent and denominated inU.S. dollars. Cash is not accepted. The Program Manager will holdall contributions up to five business days before a withdrawal ofthose assets can occur.

    No contribution minimumsThere are no minimum contribution requirements and there is nominimum amount that must be maintained in a TD Ameritrade529 College Savings Plan account. The Program Manager reservesthe right to close a zero-balance account.

    Limits on maximum contributions to an accountAdditional contributions to an account are not permitted whenthe fair market value of all accounts owned by all account ownerswithin the Trust for that Beneficiary equals the MaximumContribution Limit. If, however, the market value of such accountsfalls below the Maximum Contribution Limit, additionalcontributions will be accepted.

    The $400,000 Maximum Contribution Limit applies to all accountsfor the same Beneficiary in all plans administered by the NebraskaState Treasurer, including the TD Ameritrade 529 College SavingsPlan, the NEST Direct Plan, the NEST Advisor Plan, and the StateFarm 529 Savings Plan. The Nebraska State Treasurer mayperiodically adjust the Maximum Contribution Limit.

    Excess contributionsThe Program Manager will notify you if you attempt to make acontribution to an account that exceeds the MaximumContribution Limit. The Program Manager will not knowinglyaccept and will reject contributions in excess of the MaximumContribution Limit. Contributions will be deposited up to theMaximum Contribution Limit and the remainder will be refundedless any amounts attributable to market losses suffered betweenthe date of the contribution and the date of the refund. If theProgram Manager determines that a contribution in excess of theMaximum Contribution Limit has been accepted, the excesscontributions and any earnings thereon will be promptlyrefunded. If a contribution is applied to an account and it is laterdetermined that the contribution resulted in exceeding theMaximum Contribution Limit, the excess contribution and anyearnings will be refunded to the account owner. Any refund of anexcess contribution may be treated as a Non-QualifiedWithdrawal.

    Allocation of contributionsAt the time an account is established, you must select how youwant the contributions allocated among the Investment Optionsyou selected for future contributions (“Standing Allocation”).Additional contributions will be invested according to theStanding Allocation unless you provide different instructions. Youmay reallocate assets to different Investment Options twice percalendar year and with a permissible change in the Beneficiary.You can view your Standing Allocation any time online. You canchange your Standing Allocation any time by accessing the Plan’ssecure website, by submitting a form, or by calling the Plan.

    Systematic Exchange ProgramThe Systematic Exchange Program allows the exchange of aminimum of $200 from one Investment Option to anotherInvestment Option on a pre-scheduled basis (“SystematicExchange”).

    In order to establish the Systematic Exchange Program, you mustdeposit a minimum contribution of at least $2,500 into a “source”Investment Option. When you establish a Systematic Exchange,you must select a preset dollar amount of $200 or more to beexchanged into each of one or more preselected “receiving”Investment Options over a preset period of time, either monthlyor quarterly. Any Age-Based, Static or Individual InvestmentOption can serve as the source Investment Option or receivingInvestment Option.

    Systematic Exchange does not ensure a profit or protect againstloss in a declining market. Systematic Exchange commits you to apreset investment in the receiving Investment Option(s) selectedregardless of fluctuating prices.

    If Systematic Exchange is selected at the time that an account isopened or after an account is opened and is selected for newcontributions, it will be considered the initial investment strategyfor that account and not be counted toward the investmentchange limit for that Beneficiary for the calendar year.

    If Systematic Exchange is selected for money already depositedinto an account after an account is opened or if any changes to acurrent Systematic Exchange Program are made, that selection orchange will be counted toward the investment change limit forthat Beneficiary for the calendar year.

    Before establishing a Systematic Exchange Program, you shouldcarefully consider with your tax professional or a financial advisorthe risks associated with selecting and creating a SystematicExchange Program.

    Contributions by non-account ownersAnyone can make contributions to an account. However, only theaccount owner and custodians of an UGMA or UTMA accountwhere the custodian is the parent or guardian of the Beneficiary ofan UGMA or UTMA account, are eligible for a Nebraska stateincome tax deduction for contributions made by him or her. Inaddition, only the account owner maintains control over all..

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    18

  • contributions to an account regardless of their source, includingthe right to change Investment Options and make withdrawalsfrom an account. For the purpose of an UGMA or UTMA or minor-owned accounts, the minor is the account owner.

    Under current law, the gift and generation-skipping transfer taxconsequences of a contribution by anyone other than the accountowner are unclear. Accordingly, if a person other than the accountowner plans to make a contribution to an account, that personshould consult his or her own tax or legal advisors as to theconsequences of a contribution.

    Contribution methodsContributions can be made to an account by:• Contributing electronically from your bank account• Checks• Wire Transfer• Payroll deduction• Rollover from another qualified tuition program• Coverdell ESA• Redemption from certain U.S. Savings Bonds• Transfer within the Plan• UGMA or UTMA accounts

    Contributing electronically from your bank accountAccount owners can authorize contributions from their checkingor savings bank account into their Plan account for one-at-a-timecontributions (an “Electronic Funds Transfer” or “EFT”) orprescheduled, ongoing contributions (“Automatic InvestmentPlan” or “AlP”), subject to certain processing restrictions. Thebank from which the contribution is drawn must be a member ofthe Automated Clearing House. You can authorize theseinstructions when you complete an Enrollment Form, or, after youraccount is opened, online by accessing the secure website, bysubmitting a form available on the Plan’s website, or by calling thePlan (if you have previously submitted certain information aboutthe bank account from which the money will be withdrawn).

    For both EFT and AlP you must provide the Plan with yourbanking instructions. For AlP you must also indicate the amountand frequency you want the ongoing contributions to occur. If theaccount owner does not own the bank account, the bank accountowner must authorize in writing the use of the other person’s bankaccount. This can be accomplished on the form that establishes orchanges bank account information for your account. The bankmust be a U.S. bank and the contribution must be in U.S. dollars.

    You can initiate EFT contributions, change your bank, stop AIP, orchange your AlP contribution amount or frequency online byaccessing the secure website. You can also make such changes bydownloading and submitting a form available on the Plan’swebsite or by calling the Plan.

    If your EFT or AlP contribution cannot be processed because ofinsufficient funds or incomplete or inaccurate information, or if thetransaction would violate processing restrictions, theTD Ameritrade 529 College Savings Plan reserves the right to

    suspend future EFT or AlP contributions. A $25 charge may beassessed for rejected electronic transfers from bank accountsagainst each account that was the proposed recipient of theattempted contribution. The account owner will also beresponsible for any losses or expenses incurred by the InvestmentOption.

    We do not charge a fee for EFT or AlP transactions.

    Automatic Investment Plan (AlP)When you contribute to your account through AlP you areauthorizing us to receive periodic automated debits from achecking or savings account at your bank (if your bank is amember of the Automated Clearing House), subject to certainprocessing restrictions. Your AlP authorization will remain in effectuntil we have received notification of its termination from you andwe have had a reasonable amount of time to act on it. AlP debitsfrom your bank account will occur on the day you indicate,provided the day is a regular business day. If the day you indicatefalls on a weekend or a holiday, the AlP debit will occur on thenext business day (“debit date”). Quarterly AlP debits will bemade on the day you indicate (or the next business day, ifapplicable). You will receive a trade date of the business day onwhich the bank debit occurs.

    The start date for an AlP must be at least three business days fromthe date of submission of the AlP request. If a start date for an AlPis less than three business days from the date of the submission ofthe AlP request, the AlP will start on the requested day in the nextsucceeding period.

    A program of regular investments cannot assure a profit orprotect against a loss in a declining market.

    Electronic Funds Transfer (EFT)If you have identified a checking or savings account from whichthe money will be withdrawn, you may authorize us to withdrawfunds by EFT for contributions into your account. EFTcontributions can be made online or by calling the Plan. The Planmay place a limit on the total dollar amount per day you maycontribute to an account by EFT. EFT purchase requests that arereceived in good order:

    • Before 10 p.m. Eastern Time will be given a trade date of thenext business day after the date of receipt and will beeffective at that day’s closing price for the applicableInvestment Option or Portfolio. In such cases, the EFT debitfrom your bank account will occur on the second businessday after the request is received; or

    • After 10 p.m. Eastern Time will be given a trade date of thesecond business day after the date the request is received,and they will be effective at that day’s closing price for theapplicable Investment Option or Portfolio. In such cases, theEFT debit from your bank account will occur on the thirdbusiness day after the request is received. Your trade datewill be on the business day prior to your debit date...

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    19

  • ChecksA contribution by mail coupon should accompany the check.Contribution-by-mail coupons are sent to you when an account isopened, when a transaction is performed, and in statementmailings. If a coupon is not available, include the account numberand name of the Beneficiary on the check or include separatewritten instructions. All checks must be in good order. Somechecks that will also not be accepted include: travelers checks,foreign checks, checks dated more than 180 days from the date ofreceipt, post-dated checks, checks with unclear instructions,starter checks or counter checks, credit card or bank courtesychecks, promotional checks, third-party personal checks over$10,000, instant loan checks, and any other check we deemunacceptable. Money orders are not accepted. Third-partypersonal checks must be payable to you or the Beneficiary and beproperly endorsed by you or the Beneficiary to the TD Ameritrade529 College Savings Plan.

    A $25 charge may be assessed for returned checks against eachaccount that was the proposed recipient of the attemptedcontribution. The account owner may also be responsible for anylosses or expenses incurred in the Investment Options.

    Checks should be made payable to the TD Ameritrade 529College Savings Plan and can be sent to the following address:

    For retail clients:TD Ameritrade 529 College Savings PlanP.O. Box 30278Omaha, NE 68103-1378

    For faster delivery, consider using the overnight or courieraddress:

    TD Ameritrade 529 College Savings Plan920 Main Street, Suite 900Kansas City, MO 64105

    For clients working with a financial advisor:Please speak with your financial advisor for mailing instructions.

    Wire transferWire transfers are initiated from the contributor’s financialinstitution. Please call the Plan to obtain information regardingwire transfers.

    Payroll deductionContributions can be made into a Plan account from a paycheck ifthe employer permits direct deposit. Payroll deduction is madewith after-tax dollars. Account owners initiate payroll deductionand any changes directly with their employer. Mistakes made bythe employer can only be remedied between the employee andthe employer. The Plan will not take any responsibility for mistakesmade by the employer or employee. You must complete payrolldeduction instructions by logging into your account, selecting thepayroll deduction option, and designating the contributionamount in the instructions. You will need to print these

    instructions and submit them to your employer. Please call thePlan for further instructions on establishing direct deposit fromyour paycheck.

    RolloverContributions may also be made by a rollover or direct transfer offunds from another qualified tuition program. Rollovers fromanother qualified tuition program are treated as a non-taxabledistribution from the distributing qualified tuition program if you(1) change the Beneficiary of the account to a Member of theFamily of the former Beneficiary, or (2) do not change theBeneficiary if the rollover does not occur within 12 months fromthe date of any previous rollover to a qualified tuition program forthe Beneficiary.

    To initiate a rollover from another qualified tuition program youmust first open a Plan account. You have the option ofwithdrawing funds from the former account and, if that is the case,you must deposit the funds within 60 days into either (1) anotheraccount for the benefit of another Beneficiary who is a Member ofthe Family of the former Beneficiary, or (2) an account in the Planaccount for the benefit of the same Beneficiary.

    You may instruct the Plan to contact another qualified tuitionprogram directly to request the funds from your account in thatprogram be sent to the Plan. Check with the other qualifiedtuition program first to determine the best approach for you totake. You can call the Plan for further instructions.

    Under Internal Revenue Service (IRS) guidance, the ProgramManager is required to assume that the entire amount of anycontribution that is a rollover contribution from another qualifiedtuition program is earnings in the account receiving the contributionunless t

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TDASUP010420 Please file this Supplement to the TD Ameritrade 529 College Savings Plan Program Disclosure Statement with your records TD AMERITRADE 529 COLLEGE SAVINGS PLAN PROGRAM DISCLOSURE STATEMENT DATED NOVEMBER 18, 2019 SUPPLEMENT NUMBER ONE This Supplement amends the Program Disclosure Statement dated November 18, 2019 (the “Program Disclosure Statement”). You should read this Supplement in conjunction with the Program Disclosure Statement and retain it for future reference. Effective April 15, 2020 In late 2019, the President signed the Setting Every Community Up for Retirement Enhancement Act (the “SECURE Act” or the “Act”) into law. The Act impacts 529 plans in two significant ways: Account owners can use Plan assets to pay for fees, books, supplies or equipment required for the Beneficiary’s participation in a registered apprenticeship program; and Account owners can use Plan assets to pay principal or interest on a qualified education loan of the Beneficiary and/or the Beneficiary’s sibling, up to the federal lifetime limit ($10,000 per qualifying individual). These changes apply to distributions taken after December 31, 2018. However, these changes only apply to the Internal Revenue Codenot Nebraska laws that govern the Plan. This means that withdrawals to pay for valid apprenticeship costs or to repay student loans will only be treated as a Qualified Withdrawal under federal law. As such, the withdrawals will not be subject to federal income taxes or an additional 10% federal tax. Under state law, however, these withdrawals will be treated as Non-Qualified Withdrawals. As a result, they will be subject to recapture of any Nebraska state income tax deduction previously claimed by the account owner, and the earnings portion of the withdrawals will be subject to Nebraska state income tax. We encourage you to consult a qualified tax advisor about your personal situation and how these changes may impact you whether you are a Nebraska income tax payer or pay taxes in another state. Specific changes to the Program Disclosure Statement follow: PART 14 DISTRIBUTIONS FROM AN ACCOUNT Under topic “Non-Qualified Withdrawals” on page 52, the second paragraph is replaced in its entirety with: In general, a Non-Qualified Withdrawal is also includable in your income for federal income tax purposes and subject to an additional 10% federal tax. Certain exceptions to this rule apply. For example, under Nebraska law, withdrawals from the TD Ameritrade 529 College Savings Plan that are used to pay for a Beneficiary’s K-12 tuition, costs associated with the Beneficiary’s apprenticeship program(s), or student loan repayments for the Beneficiary and/or the Beneficiary’s siblings are Non-Qualified Withdrawals and the earnings portion of the withdrawal will be includable in your income for state income tax purposes and is subject to recapture. However, the withdrawal is not includable in your income for federal income tax purposes or subject to an additional 10% federal tax.
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