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New York's 529 Advisor-Guided College Savings Plan logo

New York's 529 Advisor-Guided College Savings Plan

In May 2012 New York's 529 College Savings Program was renamed New York's 529 Advisor-Guided College Savings Plan. Ascensus Broker Dealer Services, Inc. (formerly Upromise Investments, Inc.) serves as Progam Manager but J.P. Morgan Investment Management replaced Columbia Management Group, LLC as the plan's Investment Manager. The plan features age-based, static asset-allocation, and single-fund portfolios utilizing mutual funds from JPMorgan and SSGA. Accounts can be linked to the Upromise rewards service. To find a financial advisor in your area, use the Directory of Financial Professionals.

Our Ratingx

3.5 of 5

Fee Scorex

3 of 5

Performancex

N/A

  • Program typeSavings
  • Inception2003
  • State agency
    Office of the State Comptroller and the New York State Higher Education Services Corporation
  • Tax deduction
    Tax deduction for single filers $5,000/yr
    Tax deduction for joint filers $10,000/yr
  • Program Manager
    Ascensus Broker Dealer Services, Inc.
  • Program distributor
    JPMorgan Distribution Services, Inc.
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for NY residents

This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.

Our overall rating for non-residents

This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories.


2.57of 5
top-ten

Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

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

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

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

Minimum contributions:

The minimum initial contribution is $1,000 per account. The minimum subsequent contribution is $25 per account.

Investment Options

Age-based investment options:

The Age-Based Option contains 9 portfolios, each invested in mutual funds. Contributions are placed into the portfolio corresponding to the age of the beneficiary and later reassigned to more conservative portfolios as the beneficiary approaches college.View more age-based investment options

Static investment options:

Select among 6 multi-fund portfolios with varying risk tolerances and 16 individual-fund portfolios.View more static investment options

Underlying investments:

Primarily JPMorgan, but also funds from SSGA.View a full list of this plan's investment options

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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Fees & Expenses

Enrollment or application fee:

None, but contributions may be subject to a sales charge depending on share class.

Account maintenance fee:

$25 annually for accounts with $25,000 or less.

Program management fees:

0.30% manager fee, plus distribution/servicing fees of 0.25% (Class A), .90% - 1.00% (Class C), and None (Advisor Class)

Expenses of the underlying investments:

Ranges from 0.29% to 0.44% (portfolio weighted average) in the age-based and static multi-fund portfolios, from 0.03% to 0.75% in the individual-fund portfolios.

Total asset-based expense ratio:

Class A: 0.58% - 1.30%
Class C: 1.33% - 2.05%
Advisor Class: 0.33% - 1.05%

Broker loads and commissions:

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Breakpoint pricing:

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Taxes and other Benefits

  • Tax deduction for single filers$5,000/yr
  • Tax deduction for joint filers$10,000/yr

Example

Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.

Program match on contributions:

None.

State tax deduction or credit for contributions:

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.

State tax recapture provisions:

The principal portion of rollovers and nonqualified withdrawals from this plan are subject to New York tax to the extent of prior New York tax deductions, but only after removal of non-deducted contributions. A rollover for this purpose does not include a trustee-to-trustee transfer between two different accounts in New York's 529 plan.

State definition of qualified expenses

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This does not include tuition for elementary or secondary education.

State tax treatment of qualified distributions:

Qualified distributions from New York and non-New York 529 plans (via conformity to the federal tax exclusion) are exempt.

State tax treatment of rollovers:

New York follows tax-free treatment for rollovers except that, according to a New York State Dept. of Taxation and Finance interpretation, a rollover out of a New York 529 plan is treated as a nonqualified withdrawal. A direct trustee-to-trustee rollover between two New York 529 accounts is not treated as a nonqualified withdrawal for this purpose.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

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.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

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

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Website:

http://www.ny529advisor.com/

Telephone:

1-800-774-2108

Twitter

jpmorganfunds

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