State Farm® 529 Savings Plan

Kids grow so fast. It's hard to imagine now, but your child's college years will be here in no time. That's why you should give yourself a head start and start now. Begin thinking about your education savings goals and how the State Farm 529 Savings Plan can help you achieve them.

Named after Section 529 of the Internal Revenue Code, a 529 savings plan, provides investors a way to save tax-freefootnote 1 for higher education. The funds can be used at eligible community colleges, trade and vocational schools, universities and graduate schools all across the U.S., and even some abroad.footnote 2 Education savings plans may also be used to pay for tuition at public, private or religious elementary or secondary schools.footnote 2 You can invest for your child, grandchild, niece or nephew or your spouse – even use the funds in your State Farm 529 Savings Plan account for yourself.

With the help of your State Farm registered agent, you can develop a realistic college savings plan based on your risk tolerance, time frame, and personal family and financial situation.

Open an Account today by contacting a State Farm registered agent.

Investment options

Your after-tax contributions will be invested as you choose from a variety of investment options. 在做选择时要考虑的事情包括你的时间表(或者你需要取钱的时间)和你对风险的承受程度. Learn more about our 529 Savings Plan Investment Options.

 

Federal Tax Benefits

Contributions are made with after-tax dollars, and earnings grow federally tax-deferred while invested and federally tax-free if withdrawn for qualified expensesfootnote 3 such as tuition and fees, required books, supplies, computers and related equipment, and qualified expenses for room and board. Assets in a tax-deferred account may grow more quickly than assets in taxable accounts.

State Tax Benefits*

States may offer state tax or other tax benefits for contributions into the State Farm 529 Plan, sponsored by the state of Nebraska, or any other 529 plan sponsored by another state. 州农场529计划可能适合那些在提供州所得税减免的州有应税收入的个人, regardless of the state 529 plan into which contributions are made (tax-parity states), or 2) in states that do not have state income taxes (tax-neutral states). Keep in mind, state tax benefits are only one factor in determining if a 529 plan is suitable.

*投资者在投资前应考虑他们或其受益人所在的州是否提供任何州税或其他州福利，如经济援助, scholarship funds, 债权人的保护只适用于投资于这样的州的合格学费计划，应该咨询他们的税务顾问, attorney and/or other advisor regarding their specific legal, investment or tax situation.

Estate Tax Benefits

Contributions are considered completed gifts and are eligible for the gift tax annual exclusion of up to $18,000 ($36,000 for married couples) per beneficiary from your federal taxable estate or up to $90,000 ($180,000 filing jointly) per beneficiary in a single year, without incurring federal gift tax as long as there is no additional gift to the beneficiary for five years.footnote 4

 

return to reference 3 If assets are not used for qualified expenses, the earnings portion of the withdrawal is subject to federal income tax and may be subject to an additional 10% penalty, as well as, local and state taxes.

return to reference 4 If the account owner dies before the end of the five-year period, a prorated portion of the contribution will be included in his or her taxable estate. If you contribute less than the $90,000 maximum, additional contributions can be made without incurring federal gift taxes, up to a prorated level of $18,000 per year. 联邦赠与税可能导致如果捐款超过可用的年度赠与税豁免金额为受益人在捐赠的一年.

Eligibility

Open to any individual with a valid Social Security or taxpayer identification number. The beneficiary must also have a Social Security number. There are no state residency requirements, age or income restrictions.

Flexibility

Anyone can open an account regardless of your age, income or state of residence. There are no state residency requirements so you can reside in Illinois, invest in the Nebraska plan, and send your student to an eligible college in California.

You can use funds at virtually any accredited post-secondary public or private school in the U.S. and some abroadfootnote 5 including a university, community college, technical or vocational schools. And, if your beneficiary gets a scholarship or doesn’t need the money, you can change beneficiaries or move money to another beneficiary as long as the beneficiary is a “member of the family.”footnote 6

 

return to reference 5 合格的教育机构包括美国认可的高等教育机构或职业学校，以及一些国外提供学士学位学分的学校, an associate’s degree, a graduate level or professional degree, or another recognized post-secondary credential.

return to reference 6 A “family member” includes an individual who is a son, daughter, stepson, stepdaughter or a descendant of any such person, a brother, sister, stepbrother or stepsister, a son or daughter of a brother or sister, a brother or sister of the 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 individual described above, or a first cousin of the beneficiary. For purposes of determining who is a “member of the family,” a legally adopted child or a foster child of an individual is treated as the child of that individual by blood. The terms “brother” and “sister” include half-brothers and half-sisters.

Contributions

供款金额较低——开立账户时为250美元，后续供款为50美元(如果参加自动投资计划或工资扣除，则为50美元). Anyone can make a contribution into your beneficiary’s account. 同一受益人内布拉斯加州教育储蓄计划信托账户的所有捐款总额不得超过500美元,000.footnote 7

 

return to reference 7 当内布拉斯加州提供的所有计划中为该受益人保留的所有帐户的公平市场价值达到500美元时，不得为任何受益人提供额外供款,000. Assets can grow beyond $500,000.

Withdrawals

You may withdraw assets to pay for the beneficiary’s eligible/qualified expenses. If you do not use the assets for qualified expensesfootnote 8 the withdrawal is considered non-qualified. 不合格提款的收入部分将按接受者的边际税率缴纳普通所得税，并可能额外缴纳10%的罚款.

 

return to reference 8 If assets are not used for qualified expenses, the earnings portion of the withdrawal is subject to federal income tax and may be subject to an additional 10% penalty, as well as, local and state taxes.

Financial Aid

  • 需要完成联邦学生援助免费申请(FAFSA)来确定联邦政府是否有资格获得基于需求的经济援助, as well as, low-interest parent or student loans. FAFSA is also used by colleges and states to assist in determining eligibility for their grants or scholarships.
    • Federal grants and scholarships do not need to be paid back.
    • Parent and student loans must be paid back.
    • The FAFSA must be completed each year for the following academic year.
  • Along with other financial assets (income, investments, savings, etc.), assets in a 529 plan are taken into consideration when determining eligibility for federal financial aid. When calculating the amount the family is expected to contribute (called the Expected Family Contribution, or EFC), ownership is important. For example, parent-owned 529 assets have a lower impact (5.64% of the assets) than student-owned 529 assets (20% of the assets). Parental age can also play a role. To learn more about the impact of 529 assets in the FAFSA calculation, visit www.fafsa.ed.gov.

return to reference 1 If assets are not used for qualified expenses, the earnings portion of the withdrawal is subject to federal income tax and may be subject to an additional 10% penalty, as well as, local and state taxes.

return to reference 2 合格的教育机构包括美国认可的高等教育机构或职业学校，以及一些国外提供学士学位学分的学校, an associate's degree, a graduate level or professional degree, or another recognized post-secondary credential. Education savings plans may also be used to pay for tuition at public, private or religious elementary or secondary schools. 咨询你的税务顾问，看看你所在的州是否承认K-12学费是该州所得税下的合格提款.

Risk Disclosures

The State Farm 529 Savings Plan (the "Plan") is sponsored by the State of Nebraska, administered by the Nebraska State Treasurer, as Trustee, and the Nebraska Investment Council provides investment oversight. Union Bank & Trust Company will serve as program manager and Northern Trust Securities, Inc. will serve as distributor. 本计划在内布拉斯加州教育储蓄计划信托(“信托”)内提供一系列投资选择，该信托提供与本计划无关的其他投资选择. The Plan is intended to operate as a qualified tuition program to be used only to save for qualified education expenses, pursuant to Section 529 of the U.S. Internal Revenue Code.

An investor should consider the Plan's investment objectives, risks, charges and expenses before investing. The Program Disclosure Statement at eliogonzalez.com® which contains more information, should be read carefully before investing.

投资者在投资前应考虑他们或其受益人所在的州是否提供任何州税或其他州福利，如经济援助, scholarship funds, 债权人的保护只适用于投资于这样的州的合格学费计划，应该咨询他们的税务顾问, attorney and/or other advisor regarding their specific legal, investment or tax situation.

Automatic investment plans do not assure a profit or protect against loss.

Not FDIC Insured* | No Bank Guarantee | May Lose Value
(*Except the Bank Savings Investment Option)

Neither State Farm® nor its agents provide tax or legal advice.

Participation in the Plan does not guarantee that contributions and the investment return on contributions, if any, will be adequate to cover future tuition and other higher education expenses, or that a beneficiary will be admitted to or permitted to continue to attend an eligible educational institution.

This material is provided for general and educational purposes only and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. This material is not an offer to sell or a solicitation of an offer to buy any securities. 任何在计划内出售单位的要约只能通过与计划相关的计划披露声明和参与协议作出.

Nebraska Educational Savings Plan Trust Issuer

Nebraska State Treasurer Trustee

Nebraska Investment Council Investment Oversight

Union Bank and Trust Program Manager

State Farm VP Management Corp. Selling Dealer

Northern Trust Securities Distributor, Member FINRA, SIPC

Account owners do not own shares of the underlying investments, or, in the case of the Bank Savings Investment Option, directly hold a savings account, but rather own an interest in the Individual Investment Options offered by the State Farm 529 Savings Plan.

If assets are not used for qualified expenses, 提款的收入部分需缴纳联邦所得税和额外10%的联邦税，可能还需缴纳州税和地方税. Qualified higher education expenses include tuition, fees, textbooks, 入学或出勤所需的用品和设备(包括计算机)，以及学生在符合条件的教育机构注册至少一半的学期内的某些食宿费. Expenses for special-needs students that are necessary in connection with their enrollment or attendance may also be eligible.

If the account owner dies before the end of the five-year period, a prorated portion of the contribution will be included in his or her taxable estate. If you contribute less than the $80,000 maximum, additional contribution can be made without incurring federal gift taxes, up to a prorated level of $16,000 per year. 联邦赠与税可能导致如果捐款超过可用的年度赠与税豁免金额为受益人在捐赠的一年.

当内布拉斯加州提供的所有计划中为该受益人保留的所有帐户的公平市场价值达到500美元时，不得为任何受益人提供额外供款,000. Assets can grow beyond $500,000.

A "member of the family" includes an individual who is a son, daughter, stepson, stepdaughter or a descendant of any such person; 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 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 individual described above; or a first cousin of the beneficiary. For purposes of determining who is a “member of the family,” a legally adopted child or a foster child of an individual is treated as the child of that individual by blood. The terms “brother” and “sister” include half-brothers and half-sisters.

合格的教育机构包括美国认可的高等教育机构或职业学校，以及一些国外提供学士学位学分的学校, an associate’s degree, a graduate level or professional degree, or another recognized post-secondary credential. See www.fafsa.ed.gov/.

Non-Us residents disclosure:

在State Farm Mutual Funds网站上提及的每一项投资产品和服务都旨在提供给居住在美国的客户或潜在客户. The customer's U.S. permanent residence address must be a street address. 本网站不应被视为向任何司法管辖区的任何人招揽或提供任何投资产品或服务，如该等招揽或提供是非法的.

Business Continuity Plan Disclosure for State Farm VP Management Corp.

State Farm VP Management Corp. has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our business continuity plan.

Contacting Us – After a significant business disruption, if you cannot contact us as you usually do at 1-800-321-7520, you should contact your registered State Farm agent or go to our web site at eliogonzalez.com®.

Our Business Continuity Plan -我们计划在重大业务中断后尽快恢复并恢复业务运营，并通过保护员工和财产作出回应, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.

Our business continuity plan addresses: data back-up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and procedures to help ensure that our customers have prompt access to their funds and securities if we are unable to continue our business.

Our business continuity plan may be revised or amended. If changes are made, an updated summary will be promptly posted on our website (statefarm.Com)，或者您可以通过以下电话号码致电我们，并要求将书面副本邮寄给您，以获取最新摘要.

Varying Disruptions – Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we may transfer our operations to a local site when needed and expect to recover and resume business within 1 business day. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and expect to recover and resume business within 3 business days. In either situation, we plan to continue in business, transfer operations if necessary, and notify you through our web site eliogonzalez.com, or our customer number how to contact us. In the unlikely event that the significant business disruption is so severe that it prevents us from remaining in business, our plan provides procedures to help ensure that our customers have prompt access to their funds and securities.

In all of the situations described above, in light of the various types of disruptions that could take place and that every emergency poses unique problems, it may take longer to resume operations during any particular disruption. If you have questions about our business continuity planning, you can contact us at 1-800-321-7520.

Important Information about Procedures for Opening a New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.


AP2024/02/0271