Nevada – Saving For College Report in 2022

We discuss the tax benefits, trends, do's and don'ts and various plan options of setting up a 529 college savings plan in Nevada

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As parents, grandparents and students we know college is coming and that we're somehow going to have to pay for it someday. Fortunately we have many options available to us including savings bonds, the stock market and 529 plans. Starting a 529 account now is always the best option, no matter how old you (or your child) is. While playing the stock market may yield higher returns on your investment, placing your money into a 529 plan allows it to grow in a tax free environment. One study even found that when the federal tax benefits were taken into consideration, 529 plans outperformed their benchmarks in every category.

Nevada has it's own state-operated 529 plan called Nevada College Savings Plans. It is important to note that your child does not have to go to a NV college or university in order to use this savings account. 529 plan funds can be used at any accredited college or university across the nation, including some K-12 private schools!

Nevada College Costs & Trends

Colleges and universities across the United States experienced increased operating costs of 2.5% in 2019. This most recent inflation figure was down slightly from the 2.9 percent increase in 2018 and 3.4 percent increase in 2017. These costs are forwarded directly to students in the form of higher tuition and living expenses. As these costs steadily rise every year, parents are looking for ways to help offset these future higher education costs.

These rising costs are hitting closer to home in Nevada as well. Nevada's higher education costs rose by 58% in just the last 10 years, ranking as the 9th highest state.

The table below shows the average one-year costs last year (2021) for different types of Nevada colleges and universities.

OwnershipDegreeSchoolsPublic Out-of-State TuitionPublic In-State TuitionMedian DebtTotal Annual In-State Cost
Private 2 year 25 $12,510 $12,510 $10,680 $18,228
Private 4 year 8 $25,025 $25,025 $27,250 $28,359
Public 2 year 1 $9,853 $3,075 $10,620 $7,190
Public 4 year 6 $14,664 $4,922 $14,750 $10,590

These costs rise every year. Rising tuition is a major driver in these increased higher education costs. Tuition at a 4-year university in NV rose 14% (ranked 35th worst in the US), while a 2-year or trade school increased their tuition by 20 percent.

529 Tax Benefits for Nevada Residents

Nevada offers tax benefits and deductions when savings are put into your child's 529 savings plan.

Unfortunately Nevada does not offer any tax benefits for socking away funds in a 529 account for your child. Thankfully, NV residents can open an account in any other state that lets them.

Best 529 Plans in Nevada

The group of five Nevada 529 plans includes a prepaid tuition plan, an advisor-sold savings plan through Putnam Investments utilizing a multi-manager approach, a direct-sold 529 savings plan featuring Vanguard mutual funds, a direct-sold plan featuring SPDR ETFs and a savings program featuring USAA mutual funds. The prepaid tuition plan has a state residency requirement.

State Plan Name:Nevada College Savings Plans
Minimum Contribution:$15
Maximum Contribution:up to $370,000 per beneficiary for all plans.
Fees:0.16% to 1.33% asset management fee, depending on your plan. One plan has a $15 annual account fee that is waived for Nevada residents.

Nevada 529 Plan Statistics

There are 898,965 registered schools in Nevada with a total value of $27,002,074,697. That is an average of $30,037 per account. Unfortunately 529 plans are not widely used... a 2018 study by Edward Jones found that only 29 percent of Americans were even aware that 529 savings plans exist!