NY 529 Direct College Savings Plan

NY 529 Direct College Savings Plan

Disclaimer: This a sponsored post. All opinions are my own. 

The thought of paying for 3 children in college at the same times terrifies me. I expect all my boys to receive college degrees but haven’t thoroughly planned out the finances behind making it all a reality. My husband and I started putting small amounts away monthly in each of our children’s NY 529 Direct College Savings Plan accounts when they were born: it is never too early to start saving! I recently attended a blogger information session hosted by Momtrends at the Intrepid  Sea, Air & Space Museum to learn more about the plan and ask any questions I had. I attended with my college bound 6 year old, who was able to tour the museum while I listened to the presentation. I really wasn’t sure how it all worked and now that I have learned more about the program, I feel great that we started one for each child.

TheNY 529 Direct College Savings Plan is a type of investment account that can be used for higher-education savings. Your earning grows federally ,tax-deferred; qualified withdrawals are tax free and there are even additional tax benefits in some states, like New York where the benefit is a state tax deduction.

A NY 529 Direct College Savings Plan can be opened by anyone: parents, grandparents, relatives or even friends as long as that person is a US citizen or resident alien. The account owner picks the investments, assigns a beneficiary and is able to determine how the money is used.

The money in a NY 529 Direct College Savings Plan can be used to pay for anything that is a qualified higher-education expense including tuition: books, supplies, equipment. Here are some answers to some FAQ’s:

• Beneficiaries can attend college in any state, not just the state sponsoring the 529 plan
• There are no income restrictions to open a 529.
• Friends and family can contribute to your child’s 529 account. Learn more about Ugift: https://www.nysaves.org/home/college- savings-articles/content-secondary-col0/ share-ugift-code.html
• The account owner—not the bene ciary—is always in control of the account, even when the bene ciary becomes an adult.
• There is no age limit for bene ciaries on a 529.
• A beneficiary can have more than one account. For example, parents can open an account for a child and grandparents can open an account for the same child.

For Financial AID information: www.hesc.ny.gov/

-SD