There are a lot of myths about NY529 college savings plan and I am happy that I was able to be educated at the NY529 event hosted by MomTrends. I got information about how to get started, what are the benefits and why do it.
What is a 529 College Savings Plan
- It’s a type of investment account you can use for higher-education savings. 529 plans are usually sponsored by states.
With the rising costs of college tuition you want to have something set aside for your kids to help them not have to take out huge loans (when you graduate they want their money). Whether you or grandparents set it up a NY 529 plan helps you save money for your children.
One of my own misconceptions I had was that it can only be used at a 4 year institution and if your child does not attend college you lose the money. The truth is that your 529 account can be used to pay for qualified higher-education expenses at any eligible educational institution. Higher education expenses include tuition, books, supplies, equipment, computer equipment, and certain room and board fees. The 529 plan can you used at postsecondary, vocational schools, 2 and 4 year colleges and postgraduate programs.
What I also love is the fact that you can open up an account with as little as $1.00 and contribute as much or as little as you want. Contributions up to 10,000 are deductible from your taxes if married and single taxpayers 5,000. Are you worried if they want to attend school outside of NY they can’t use it? No problem because you can use the 529 plan in any other state.
There is really no reason not to set up a NYS 529 College Savings Plan. When birthdays and holidays come around instead of requesting toys, you can ask them to make a contribution to your account by sharing a special U gift code on Twitter or by email.
For more information about New York’s 529 College Savings Plan, obtain a Disclosure Booklet and Tuition Savings Agreement at www.nysaves.org or by calling 1-877-nysaves. This includes investment objectives, risks, charges, expenses and other information. You should read them carefully before investing.
Disclaimer: Compensation was provided by NY529 Direct via Momtrends. The opinions expressed herein are those of the author and are not indicative of the opinions of NY 529 Direct or Momtrends.