Facebook Pixel
Quick links
LoginGet started
529 Plans
College Savings 101
Student Loans
For Professionals

New York's 529 College Savings Program -- Direct Plan

4 / 5

Our rating

Good NY resident benefits

NY resident benefits

New York's direct-sold 529 college savings plan is available to residents of any state. It offers low fees and diverse investment options featuring Vanguard mutual funds. New York residents may enjoy a state tax deduction for contributions to the plan. There is no minimum contribution to start saving with New York's 529 College Savings Program and you can enroll online in minutes.

Enroll Now
Enroll Now Count332,337 Clicked to Enroll
New York's 529 College Savings Program -- Direct PlanHigh Honors

KEY METRICS

OVERVIEW

Program type

Savings

Inception

1998, but substantially changed in November 2003

State agency

Office of the State Comptroller and the New York State Higher Education Services Corporation

Tax deduction

For single filers: $5,000/yr per beneficiary

For joint filers: $10,000/yr per beneficiary

Program manager

Ascensus College Savings

Program distributor

Vanguard Marketing Corporation

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

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

Significant time or age restrictions imposed by the program:

None

Did you know?

  • NY residents can claim a tax deduction for contributions to a NY 529 plan.

    Up to $10,000/yr ($5,000/yr for single filers) per year are eligible.

  • 529 plan contributions grow tax-free.

    Withdrawals are tax-free when used to pay for qualified higher education expenses.

  • You can contribute as much as you want, as often as you want.

    The key is to get started. Enroll today by completing a quick form online.

New York's 529 College Savings Program -- Direct Plan
Enroll Now
Enroll Now Count332,337 Clicked to Enroll

Contributions

Maximum contributions:

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

Minimum contributions:

No minimum.

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.

Investment Options

Investors in New York's 529 College Savings Program -- Direct Plan can select from the following investment options. Click on a portfolio name for more information.

Choose from among 20 Target Enrollment Portfolios, in which target allocations of the portfolio automatically adjust to more conservative allocations as your beneficiary approaches college age.
PortfolioE.R. % Equity1yr performance
Target Enrollment 2023 Portfolio0.11%16.42%4.51%
Target Enrollment 2024 Portfolio0.11%18.36%4.6%
Target Enrollment 2025 Portfolio0.11%20.29%4.78%
Target Enrollment 2026 Portfolio0.11%23.43%4.77%
Target Enrollment 2027 Portfolio0.11%27.96%5.03%
Target Enrollment 2028 Portfolio0.11%34.29%5.39%
Target Enrollment 2029 Portfolio0.11%42.63%5.53%
Target Enrollment 2030 Portfolio0.11%49%5.87%
Target Enrollment 2031 Portfolio0.11%53%5.95%
Target Enrollment 2032 Portfolio0.11%57%6.02%
Target Enrollment 2033 Portfolio0.11%62%6.09%
Target Enrollment 2034 Portfolio0.11%68%6.34%
Target Enrollment 2035 Portfolio0.11%74%6.5%
Target Enrollment 2036 Portfolio0.11%80%6.56%
Target Enrollment 2037 Portfolio0.11%85%6.62%
Target Enrollment 2038 Portfolio0.11%89%6.69%
Target Enrollment 2039 Portfolio0.11%93%6.76%
Target Enrollment 2040 Portfolio0.11%95%6.83%
Target Enrollment 2041 Portfolio0.11%95%6.83%
Commencement Portfolio0.11%11.6%4.34%
Target Enrollment 2042 Portfolio0.11%95%6.74%
Target Enrollment 2043 Portfolio0.11%95%N/A

Age-based/Enrollment Year investment options:

Choose from among 20 Target Enrollment Portfolios, in which target allocations of the portfolio automatically adjust to more conservative allocations as your beneficiary approaches college age.

Static investment options:

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

Underlying investments:

Vanguard mutual funds.

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

0.12% manager fee; fee includes underlying fund expenses.

Expenses of the underlying investments:

Not applicable, 0.01%-0.07%

Total asset-based expense ratio:

0.11%

Taxes and other Benefits

Tax deduction for single filers:

$5,000/yr per beneficiary

Tax deduction for joint filers:

$10,000/yr per beneficiary

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.

Calculate your New York 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a New York 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

State tax recapture provisions:

The Program has received a letter from the DTF advising that all Rollover Distributions from an Account to an account in a 529 plan outside of the Program that occur on or after January 1, 2003, will be treated as New York Nonqualified Withdrawals for New York State tax purposes. This tax treatment applies without regard to whether the Rollover Distribution results in income for federal tax purposes. This means that any portion of the Rollover Distribution that is earnings or for which a previous income deduction was taken will be included in your New York State gross income for that tax year and will be subject to recapture of any previously taken New York State income deductions.

State definition of qualified expenses

The state's definition of qualified education expenses includes expenses for attendance at an institution of higher education or an apprenticeship program, and payments of interest and/or principal on qualified education loans up to a $10,000 lifetime cap as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. Distributions from a 529 account directly to the beneficiary's Roth IRA are considered a qualified expense for state income tax purposes. The state's definition 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

Is there a rewards program or outside scholarship program that works with this 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.

Statutory protection of an account from creditors:

Did you know?

  • Residents are not limited to investing in their own state's 529 plan.

    Another state may offer a plan that performs better and has lower fees.

  • The 529 plan chosen does not affect which state the student enrolls in.

    You can live in New York, open a plan from Nevada and send a student to college in Florida.

  • The best way to maximize your college savings?

    Start early and save often. You can get started today with easy online enrollment.

New York's 529 College Savings Program -- Direct Plan
Enroll Now
Enroll Now Count332,337 Clicked to Enroll

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?

Yes

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

Contact

Website:

http://www.nysaves.org

Telephone:

1-877-697-2837

Twitter

http://twitter.com/ny529direct

Start saving for your child's future today

Complete the online application and make your first deposit

New York's 529 College Savings Program -- Direct Plan
Enroll Now
Enroll Now Count332,337 Clicked to Enroll

A good place to start:

See the best 529 plans, personalized for you

Enroll Now
Enroll Now Count332,337 Clicked to Enroll
Helping families save for college since 1999
Key Resources
Our Company
Join our email list

The latest articles and tips to help parents stay on track with saving and paying for college, delivered to your inbox every week.

Frequently featured in:

Saving For College is an unbiased, independent resource for parents and financial professionals, providing them with information and tools to understand the benefits of 529 college savings plans and how to meet the challenge of increasing college costs.

20533 Biscayne Blvd Ste 4 #199 Miami, FL 33180-1501Phone: (585) 286-5426Copyright © 2025 Saving for College, LLC. All Rights Reserved