Investing in the Direct Plan involves certain risks, including the possibility that you may lose money over short or even long periods of time. Invest Wisely and KnowledgeablyĬarefully read the enrollment information, along with the risks of investment, before opening an account. The investment manager, The Vanguard Group, Inc., is responsible for the investment of Direct Plan assets. The program manager, Ascensus College Savings, is responsible for the day-to-day operations of the Program. 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. Equipment required for enrollment or attendance at any eligible post-secondary school in the world.Qualified higher education expenses include: 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. However, tax deductions may be reflected when you file your New York State tax returns, and will not be reflected each pay period. 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.Ĭontributions to this program are not pre-tax and will not be reflected on your W-2 Wage and Tax Statement. You can receive a New York State income tax deduction of up to $5,000 ($10,000 for married couples filing jointly).For example, tuition, fees, room and board, books, supplies, and equipment required for enrollment or attendance at any eligible post-secondary school in the world. Your withdrawals are free from federal and New York State income tax when used to pay for qualified education expenses (Qualified Withdrawals).Unlike a taxable account, your assets compound tax-free, giving you better potential for growth over the long-term (Contributions are not deductible for federal income tax purposes.).Significant tax advantages are an attractive feature of the Program. You can choose from three age-based options and 13 individual portfolios, giving you significant flexibility in managing your investment strategy. You can even set up an account for yourself. EligibilityĪnyone - 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. 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 (87). You may add, change, or stop your payroll deductions at any time. You may contribute as little as $15 or as much as you want for each investment option for an account per pay period. 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.
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