Checklist for the New York's 529 College Savings Program -- Direct Plan

The Savingforcollege.com 529 Selection Checklist is a simple tool designed to assist you in your research and selection of a 529 college savings plan. Before investing in a 529 plan, be sure to read the official program offering materials.

Steps:

1. Use a separate checklist for each 529 plan you are considering.
2. Use the "Notes" line to add any notes or thoughts you feel are relevant to that particular question. Information about the 529 plan being evaluated can be gathered from its official program disclosures, the plan web site, and third-party sources like Savingforcollege.com.
3. Use the "Acceptable, Unacceptable, or Not Important" checkboxes to indicate your conclusions as to how well the 529 plan you are evaluating meets the various criteria. Some criteria will not make any difference in your selection of your plan and should be noted as Not Important. In lieu of simply indicating acceptable or unacceptable you may want to develop a rating scale, e.g. 1 through 5.
4. Compare the checklists for the various 529 plans being considered and use the results to help you select the appropriate 529 plan.

Enrollment Issues:

Who is eligible to use this particular 529 plan?

U.S. citizens and resident aliens including minors, UGMA/UTMA custodians, and legal entities.

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How do I enroll: through a financial advisor (generally higher expense) or directly with the program (generally lower expenses)?

Enroll directly with the program.

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What, if any, age or time limits are imposed by this 529 plan that may restrict how long I can hold the plan?

None

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Can I complete the enrollment process for this 529 plan online (including funding the account)?

Yes

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Can I meet the plan's minimum contribution requirements either with a lump-sum contribution or by signing up for automatic contributions?

No minimum.

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Is the plan's maximum contribution limit high enough to accommodate my college funding desires?

Accepts contributions until all account balances in New York's 529 plans for the same beneficiary reach $520,000.

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Will this 529 plan allow my other relatives and friends to make contributions directly to my account?

Yes, and through Ugift--Give College Savings, families and friends may be invited via e-mail invitation or gift contribution coupon to make contributions to the account.

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Program benefits:

If I live in the state offering this 529 plan, what are the state income tax deductions or credits I can claim for my contributions to it? (Note: If you live in Arizona, Kansas, Missouri, Maine, and Pennsylvania you do not have to use the in-state 529 plan to claim a deduction).

Contributions to a New York 529 plan of up to $5,000 per year by an individual, and up to $10,000 per year by a married couple filing jointly, are deductible in computing New York taxable income. Only contributions made by the account owner, or if filing jointly, by the account owner's spouse, are deductible. Contribution deadline is December 31 postmark.

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Notes: _______________________________________________________________________

If I live in the state offering this 529 plan, what matching contributions might I be eligible for?

None.

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If the state offering this 529 plan administers its own student financial aid programs, will my account in this plan be excluded for purposes of determining eligibility?

Yes

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If I prefer an investment that automatically changes to a more conservative asset mix as my child approaches college age, what "age-based" options are offered in this 529 plan?

The Target Enrollment Portfolios offers Contribution are placed into the portfolio corresponding to the selected risk level and beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.

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If I prefer one or more investments that do not adjust over time, what "static" options are offered in this 529 plan?

Select among 5 multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, and Income), 8 individual fund portfolios, and the Interest Accumulation portfolio.

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Which mutual fund families, or other investment managers, are utilized in this 529 plan? Do the investment options consist of a single fund family or a mix of fund families?

Vanguard mutual funds.

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Does my preferred investment option in this program include foreign stocks, real estate, inflation-adjusted securities, or other sectors that I feel are desirable?

Vanguard mutual funds.

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Which type of mutual funds does my preferred investment option use: actively managed funds or passively managed index funds?

Mostly index funds.

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What is my assessment of the quality of the particular investment options in this 529 plan?

Mostly index funds.

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How acceptable is the range of investment options in this 529 plan in the event I wish to change investment options in the future?

Mostly index funds.

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Fees and expenses:

How much is the enrollment fee in this 529 plan? Do I qualify for a waiver?

None.

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Notes: _______________________________________________________________________

How much is the account maintenance fee in this 529 plan? Do I qualify for a waiver?

None.

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Notes: _______________________________________________________________________

What is the total asset-based expense ratio (or range of ratios) for the investment options in this plan?

0.12%

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How do the fees and expenses of this program compare to other 529 plans that offer investment options very similar to my preferred investment option in this program?

This is among the lower cost plans that use Vanguard Funds and are managed by Upromise Investments.

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Other issues:

What are the special creditor protections for this 529 plan under the laws of the sponsoring state?

Under New York law, assets in a New York 529 account are exempt from application to satisfy a money judgment against an account owner/designated beneficiary who is a minor. Protection for an account owner who is not a minor is limited to $10,000 on an aggregate basis.

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Notes: _______________________________________________________________________

Is this 529 plan linked into my favorite rewards service (e.g. Fidelity 529 College Rewards Card, Futuretrust, Upromise)?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

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Notes: _______________________________________________________________________

Will I have online access to my account for looking up my account values, etc?

Yes

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Notes: _______________________________________________________________________

Who can I name as "payee" on distributions from this 529 plan? How easy is the process of requesting distributions?

Choice of account owner, beneficiary, or eligible educational institution; if the institution, then the withdrawal amount is first directed to the NY Higher Education Services Corp. and then paid to the institution from HESC.

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Notes: _______________________________________________________________________

Will this 529 plan accept my request to transfer the account owenership to someone else?

Accepts requests to transfer account ownership.

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Notes: _______________________________________________________________________

How thorough and understandable are the program's official disclosure materials, and how much help is available through the programs web site, call center, etc.?

Accepts requests to transfer account ownership.

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Notes: _______________________________________________________________________

Are there any other considerations unique to this program that can be considered advantages or disadvantages?

Accepts requests to transfer account ownership.

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Notes: _______________________________________________________________________

Before investing, be sure to read and understand the official program materials provided on the 529 plan's website.

Click here to visit

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