Nevada 529 Plan Rules And College Savings Options
Nevada has a main 529 plan called the Upromise 529 that can help you save for college. However, Nevada has also become the state the sponsors most of the major investment firm 529 plans as well - including Vanguard, USAA, Putnam, and Wealthfront. Nevada also has a 529 Able Plan as well.
If you live in Nevada, these might be good options for you to save for college.
These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.
If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?
There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of Nevada. Each state has different rules when it comes to 529 plan savings. Here are the Nevada 529 plan rules.
Average Cost Of College In Nevada
When saving for college in Nevada, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.
There are 37 colleges and universities in the State of Nevada.
The total average cost of college (Cost of Attendance) in Nevada for in-state residents is $17,064 for 2023. This includes tuition, room and board, books and supplies, and other expenses.
For just tuition alone, the average undergraduate tuition for in-state residents is $5,530 for 2023. The cost of tuition in Nevada has been rising at about 5% per year.
See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.
Explore the data here.
Nevada 529 Plan Rules And Tax Information
Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free.
Here are the special tax benefits and considerations for using a 529 plan in Nevada.
Contributions
Nevada doesn't have a personal state income tax, so there are no tax savings. However, Nevada does have a matching contribution program.
Minimum: $15
Maximum: Accepts contributions until all account balances for the same beneficiary reach $500,000.
Matching Program: The Silver State Matching Grant Program provides a maximum $300 annual matching contribution ($1,500 lifetime maximum) for each beneficiary from a Nevada family with prior-year AGI of $74,999 or less.
Rollovers
Rollovers into the state plans are allowed. Outbound rollovers follow federal tax treatment.
Qualified Distributions
Qualified distributions from a Nevada and non-Nevada 529 plan are tax-free (there is no personal income tax).
K-12 Education
Nevada does conform with Federal law in regard to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.
Student Loans
Nevada does conform with Federal law for using a 529 plan for student loans.
Rollover To Roth IRA
Nevada does allow the rollover to a Roth IRA up to $35,000.
Non-Qualified Distributions Taxes, Penalties, Recapture
A non-qualified withdrawal from a Nevada 529 plan follows federal law since there is no Nevada personal income tax.
Nevada 529 College Savings Plan Options
Nevada has several 529 plan options - three consumer plans, one prepaid tuition plan, and two plans that are sold by financial advisors (we're big advocates of doing-it-yourself, you don't need to pay a financial advisor for this).
The Vanguard 529 College Savings Plan
The Vanguard 529 College Savings Plan is the name of one of Nevada's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include Vanguard.
Note: This plan does have a $3,000 minimum, unlike the other plans.
Open a Vanguard 529 Plan here >>
Fees:
There is a program management fee of 0.11%.
The underlying funds all charge expense ratios from 0.01% to 0.31% depending on the investment option.
Who Should Use It:
We recommend that Nevada residents consider this plan due to the low fees and plan investment options.
We recommend that out-of-state residents utilize the Nevada Vanguard 529 plan.
SSGA Upromise 529 Plan
The SSGA Upromise 529 Plan is the name of one of Nevada's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include SSGA.
Fees:
There is a program management fee of 0.22%.
The underlying funds all charge expense ratios from 0.04% to 0.65% depending on the investment option.
Who Should Use It:
We recommend that Nevada residents consider this plan and the Vanguard plan due to the low fees and plan investment options.
We recommend that out-of-state residents utilize the Nevada Vanguard 529 plan.
USAA 529 College Savings Plan
The USAA 529 College Savings Plan is the name of one of Nevada's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include USAA. However, realize that USAA sold their mutual fund business to Victory Capital, so while it's branded USAA, it's not the same.
Note: This plan does have a $50 minimum.
Fees:
There is a program management fee of 0.10%.
The underlying funds all charge expense ratios from 0.35% to 0.80% depending on the investment option.
Who Should Use It:
We don't recommend that Nevada residents consider this plan due to fees and investment options.
We recommend that out-of-state residents utilize the Nevada Vanguard 529 plan.
Nevada Prepaid Tuition Program
The Nevada Prepaid Tuition program is a prepaid program that allows Nevada residents and University of Nevada alumni to buy contracts guaranteeing certain units of schooling.
You must purchase the plan or contracts before your child is done with 9th grade.
You can purchase anywhere from two years at a community college, to four years at the University of Nevada.
If you choose to use the tuition outside of Nevada, your dollars will translate to the weighted average of tuition at in-state Nevada public schools.
Advisor Plans
We don't typically talk advisor plans, but many advisor plans are housed in Nevada. This includes the advisor plans offered by Putnam and by Wealthfront.
Nevada 529 Able Plan Options
529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here.
Able Nevada
The Able Nevada is a 529A plan open to all residents in Nevada.
This plan allows contributions of up to $18,000 per year from all sources.
It does have a minimum initial contribution amount of $25 per account. The minimum subsequent contribution amount is $25.
The plan does have an account maintenance fee of $60 annually, assessed at $15 per quarter. It also has a program management fee of 0.32%.
You can open an Able Nevada Plan here.
Other Programs To Save For College
A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.
If you're looking for ways to boost your college savings, check this out:
Backer
Backer is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.
Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.
Upromise
Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.
Nevada Financial Aid
Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.
Check out the list of Nevada Student Loan and Financial Aid Programs.
Return to the full list of 529 Plans By State.
Editor: Clint Proctor Reviewed by: Mark Kantrowitz
