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529 New York College Savings Plan

The New York 529 College Savings Plan is administered by the Comptroller of the State of New York and the New York State Higher Education Services Corporation.
Upromise is the Program Manager and Recordkeeping and Servicing Agent while The Vanguard Group, Inc. is the investment manager of the program.

The 529 New York Plan offers a convenient and inexpensive way to save for college education. You can open an account for anyone...a child, grandchild, friend or yourself. By joining UPromise, you can even arrange to get a percentage of your spending in a large number of companies rebated to your 529 New York account.

As with all 529 Plans, your investment will grow federal tax-deferred. Additionally, 529 owners who are New York taxpayers will be able to deduct up to $5,000 per year ($10,000 for married couples filing jointly) from their New York State income tax return.

Some other benefits of a NY 529 Plan are:

* You can begin with as little as a $25 deposit.
* Management fee is a miniscule .25%. You won't find a much better deal anywhere.
* You have many choices where to place your money from very aggressive to very conservative. There are 16 options offered by Vanguard, including 3 age based and 13 individual portfolios that you can choose. Place your money in up to 5 of these at any one time.
* Each beneficiary can have up to $375,000 in 529 accounts.
* Low administrative fees compared with buying mutual funds on the outside.
* Contribute up to $15,000 per year without incurring federal gift taxes. You can even contribute up to $65,000 in one year ($130,000 if married filing jointly) as long as you don't make any further contributions to the same beneficiary during the following 5 years.
* All U.S. citizens and resident aliens, providing they have a valid Social Security or taxpayer identification number and a permanent U.S. address, are eligible to open an NY College Savings Plan account.

Withdrawals from a New York 529 plan account must be for qualified educational expenses or the earnings may be subject to income taxes, both state and federal, as well as a 10% penalty. Before investing, you should be aware that the principal of the invested funds is not guaranteed and values may fluctuate up and down with the markets. For more infomation on the 529 New York College Savings Plan, visit https://uii.nysaves.s.upromise.com/.