Open an account with just $25 or schedule automatic deductions from a bank account of at least $25 per month. If your employer offers payroll deduction, contributions can be as low as $15 per pay period. The account owner must designate a single beneficiary for each account. A separate account may be opened for each child.
New York taxpayers can deduct up to $5,000 in contributions each year from state taxable income. Married couples filing jointly may deduct up to $10,000 annually. Qualified withdrawals are exempt from both federal and state income taxes!
Use the funds to pay for tuition, room and board, fees, books, supplies and equipment required for enrollment or attendance at any eligible public or private college or university, or business, trade, technical or other occupational school, in New York or anywhere in the country.
Account balances will not be used in the calculation of New York State student financial aid programs. However, other financial aid programs — private, federal, school — may consider College Savings Program accounts in calculating assistance.
The NY State Comptroller and the Higher Education Services Corporation jointly oversee the program. The Program is managed by Upromise Investments Inc., and investments are managed by Vanguard.
New York's 529 College Savings Program Direct Plan offers 16 investment choices—three age-based options that automatically adjust your assets over time to more conservative allocations and 13 individual portfolios that you adjust yourself according to your own investment strategy and risk tolerance. You can select up to five investment options per account.
Withdrawals that are NOT used to pay for the qualified higher education expenses of the designated beneficiary may be treated as taxable income for both federal and state income tax purposes and a federally-mandated penalty will be payable on the investment income withdrawn.
For more information, call toll-free 1-877-NYSAVES or visit www.nysaves.org.
New York's 529 College Savings Program Direct Plan is described in the current applicable Program Brochure and Tuition Savings Agreement. Accounts are opened by completing an Enrollment Form.
Before you invest, consider whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.
For more information about New York’s 529 College Savings Program Direct Plan, obtain a Direct Plan Disclosure Booklet and Tuition Savings Agreement at www.nysaves.org or by calling 1-877-697-2837. This includes investment objectives, risks, charges, expenses, and other information. You should read nd consider them carefully before investing.
The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Direct Plan. Upromise Investments, Inc., and Upromise Investment Advisors, LLC, serve as Program Manager and Recordkeeping and Servicing Agent, respectively, and are responsible for day-to-day operations, including effecting transactions. The Vanguard Group, Inc., serves as the Investment Manager.Vanguard Marketing Corporation markets, distributes, and underwrites the Direct Plan.
No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, Inc., Upromise Investments, Inc., nor any of their applicable affiliates insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio.
New York’s 529 College Savings Program currently includes two separate 529 plans. The Direct Plan is sold directly by the Program. You may also participate in the Advisor Plan, which is sold exclusively through financial advisors and has different investment options and higher fees and expenses as well as financial advisor compensation.
Upromise, Ugift, and the Upromise logo are registered service marks of Upromise, Inc.