New York's 529 College Savings Program Direct Plan provides New York families with a tax-advantaged way to save for college, and allows City employees to save for college through easy payroll deductions. You may contribute as little as $15 or as much as you want for each investment option for an account per pay period. You may add, change, or stop your payroll deductions at any time.
To see the acceptable forms of contributions or to enroll, visit NY's 529 College Savings Program website or call the Program toll-free at 877-NYSAVES (877-697-2837).
Anyone - a parent, grandparent, relative, or friend - can set up an account for a future college student, and there are no restrictions based on age, income, or state of residence. You can even set up an account for yourself.
You can choose from three age-based options and 13 individual portfolios, giving you significant flexibility in managing your investment strategy.
Significant tax advantages are an attractive feature of the Program.
If you are a resident or taxpayer of another state, you should consider whether that state offers a 529 Plan with tax or other benefits that are not available through this Program.
Contributions to this program are not pre-tax and will not be reflected on your W-2 Wage and Tax Statement. However, tax deductions may be reflected when you file your New York State tax returns, and will not be reflected each pay period.
Proceeds from your account can be used to pay tuition and other qualified higher education expenses of your beneficiary at any eligible undergraduate or graduate public or private college or university or trade, vocational, or professional school.
Qualified higher education expenses include:
The Comptroller of the State of New York and the New York Higher Education Services Corporation (HESC) together are jointly responsible for implementing the Program.
The program manager, Ascensus College Savings, is responsible for the day-to-day operations of the Program.
The investment manager, The Vanguard Group, Inc., is responsible for the investment of Direct Plan assets.
Carefully read the enrollment information, along with the risks of investment, before opening an account. Investing in the Direct Plan involves certain risks, including the possibility that you may lose money over short or even long periods of time.
None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, or Ascensus College Savings insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio.
The value of your account will vary based on market conditions and the performance of the investment options you select, and may be less or more than the amount you deposit. Tax benefits are subject to certain limitations and certain withdrawals are subject to federal, state, and local taxes. You should also consult your tax advisor. Investments may be made through Ascensus College Savings and Vanguard Marketing Corporation as distributors.
To learn more, visit NY's 529 College Savings Program website or call the Program toll-free at 877-NYSAVES (877-697-2837).