General InformationDownload PDF Report
New York's 529 College Savings Program -- Direct Plan
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.
- Program typeSavings
- Inception1998, but substantially changed in November 2003
- State agencyOffice of the State Comptroller and the New York State Higher Education Services Corporation
- Program ManagerAscensus College Savings
- Program distributorVanguard Marketing Corporation
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for NY residents
This is a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.
Our overall rating for non-residents
This is a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.
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.
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:
NoneWho 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:
NoneDid you know?
NY residents can claim a tax deduction for contributions to a NY 529 plan.
Contributions are deductible in computing state taxable income
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.
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.Investment Options
Age-based investment options:
The Age-Based Option offers a choice among 3 different risk levels (Aggressive, Moderate, or Conservative) each containing 9 portfolios of underlying mutual funds. Contributions 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.View more age-based investment optionsStatic investment options:
Select among 5 multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, and Income), 7 individual fund portfolios, and the Interest Accumulation portfolio.View more static investment optionsUnderlying fund allocations:
UNLOCK PROPortfolio Fees & Performance Lookup
UNLOCK PROFees & Expenses
Enrollment or application fee:
None.Account maintenance fee:
None.Program management fees:
0.15% manager fee; fee includes underlying fund expenses.Expenses of the underlying investments:
Not applicable, included in the program management fee.Total asset-based expense ratio:
0.15%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 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?
YesDoes participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
NoDoes the program have a formal agreement with a rewards program or outside scholarship program?
Yes, with Upromise. The Upromise Rewards service is free to join and offers cash back for college.Statutory protection of an account from creditors:
UNLOCK PRODid 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.
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?
YesCan the complete enrollment process including funding be done online?
YesDocuments and other services accessible or downloadable on the program's public Web site:
UNLOCK PROPlan News
Start saving for your child's future today
Step 1
Click the blue Enroll Now button to the right
Step 2
Complete the online application and make your first deposit