Disclaimer: This post is sponsored by Linqia but the content and opinions expressed here are my own
The end of the school year brings a sense of relief, celebration and preparation for the next academic year. Gifts are presented to scholars who have completed one journey of their educational journey and are moving on to another, students who have successfully finished a grade and even children preparing to begin their schooling. Parents, grandparents, caregivers and family who want to give meaningful gifts that will last more than a season should definitely consider gifting to a loved one’s NY’s 529 College Savings Program Direct Plan account.
You can start saving at any time: Whether the child is a toddler or a teen, it’s never too early or too late to save for higher education. Investing in the future of the of the students in your life is a gift that will truly be appreciated and valued. Saving for college now will be beneficial when the time comes to seek out higher education options.
Take on less debt: The more you can put aside for college now, the fewer loans you and your child may have to take out later on. Saving rather than borrowing also makes your overall college cost much lower. There are a number of education choices besides traditional colleges that the funds can be allocated to.
Choose any eligible school: Your child can attend any eligible higher-education institution, not just a 4-year college or university. This includes vocational and trade schools, as well as community colleges and graduate schools. I celebrate the end of the school year by giving to NY’s 529 College Savings Program Direct Plan belonging to my children as well as my niece. Gifting is simple through the Ugift website using the beneficiaries Ugift code and can be completed in a couple minutes. This gift will provide some much needed assistance when they are ready to extend their educational journeys. You can find more information at NYsaves.org
*Disclosures: Up to $10,000 is deductible annually from New York State taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually. State tax benefits for non-resident New York taxpayers may vary. State tax deductions may be subject to recapture in certain circumstances such as rollovers to another state’s 529 plan, nonqualified withdrawals, or withdrawals used to pay expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Please consult your tax advisor.
Investment returns are not guaranteed, and you could lose money by investing in New York’s 529 College Savings Program Direct Plan.For more information about New York’s 529 College Savings Program Direct Plan, download a Disclosure Booklet and Tuition Savings Agreementat www.nysaves.orgor request one by calling 877-NYSAVES (877-697-2837). This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider them carefully before investing.
Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other benefits that are only available for investments in that state’s 529 plan. Other state benefits may include financial aid, scholarship funds, and protection from creditors.
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.
Ascensus Broker Dealer Services, LLC, serves as Program Manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group, Inc., serves as the Investment Manager. Vanguard Marketing Corporation provides marketing and distribution services to the Direct Plan.No guarantee:None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, Inc., Ascensus Broker Dealer Services, LLC, 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 Planis 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.