DiNapoli Announces Changes to New York's College Savings Plan
State Comptroller Thomas P. DiNapoli today announced that New York's 529 College Savings Program Direct Plan has negotiated even lower fees for individuals participating in the program. In addition, other changes expand access to investment options for potential investors.
“We believe higher education should be possible for all families and we are always looking for new ways to help them save for that goal,” DiNapoli said. “The changes to New York’s 529 program we are announcing today will allow us to better help parents save for their children’s futures.”
New York’s 529 College Savings Program Direct Plan will reduce expenses by a third, from 0.25 percent to 0.17 percent, across the direct plan’s investment options. The investment manager is Vanguard and the program manager is Upromise Investments. Vanguard handles the direct plan’s investment decisions while Upromise administers the entire 529 program.
Additionally, the investment management and distribution of New York’s 529 College Savings Program Advisor Plan will transition from Columbia Management to J.P. Morgan Asset Management. Participants and new investors can expect expanded investment options as well as lower fees on average and enhanced online services with the switch to J.P. Morgan. The advisor plan will be renamed New York’s 529 Advisor-Guided College Savings Program. All of the announced changes are effective this week.
New York’s 529 College Savings Program Direct Plan is the nation’s largest direct-sold college savings program, with more than $11 billion invested in more than 575,000 college savings accounts. Participants can save for their children, grandchildren, friends – or even themselves. The program is designed to provide a number of benefits for families saving for college, including federal income tax advantages such as the ability to grow assets tax-deferred and make tax-free qualified withdrawals.
Any New York taxpayer can invest in New York's 529 College Savings Plan and deduct up to $5,000 (or up to $10,000 for married couples filing jointly) from their state taxable income each year. For more information on New York’s 529 College Savings Program, please call toll-free 1-877-NYSAVES or visit www.nysaves.org.