Facebook Pixel New York 529 Plan Contribution Limits

New York 529 Plan Contribution Limits

Written by Mark Kantrowitz | March 18, 2024

 

There are no annual contribution limits for New York 529 plans, other than the annual gift tax exclusion and 5-year gift-tax averaging. New York 529 plans have one of the highest cumulative contribution limit of $520,000 per beneficiary.

Annual Contribution Limits

As a general rule, there are no annual contribution limits for any state 529 plan, including the New York 529 plans.

Contributions that exceed the annual gift tax exclusion of $18,000 per beneficiary ($36,000 for a couple giving jointly) may be subject to gift taxes if the contributor does not elect to use 5-year gift-tax averaging.

If the contributor elects to use 5-year gift-tax averaging, a single contributor may give a lump sum of up to $90,000 per beneficiary and a couple giving together may give a lump sum of up to $180,000 per beneficiary.

If there are any gift taxes, they are paid by the contributor. Account owners and beneficiaries do not pay gift taxes.

Aggregate Contribution Limits

Each state sets its own aggregate contribution limit. Usually, the aggregate contribution limit is based on the cost of 7 years of postsecondary education in the state.

In New York, the aggregate contribution limit is $520,000, more than most other states.

Once the New York 529 plan account balance reaches the aggregate contribution limit, no further contributions will be allowed. Excess contributions will be returned to the contributor. However, the New York 529 plans may continue to accumulate earnings after reaching the aggregate limit.

Minimum Contribution to New York 529 Plans

There is no minimum contribution amount for the direct-sold New York 529 plan.

After a $1,000 initial minimum contribution amount for advisor-sold New York 529 plans, subsequent contributions must be at least $25.

Tax Deductions for New York 529 Plan Contributions

Contributions to New York 529 plans are made with after-tax dollars.

Contributions to New York 529 plans may be deducted on the state income tax return, but not on federal income tax returns. The state income tax deduction is capped at $5,000 in contributions by single filers and at $10,000 for married couples filing joint state income tax returns. Some states have higher state income tax deduction limits on contributions to the state’s 529 plan.

For a taxpayer to be eligible for the state income tax deduction, the contributions must be made by the account owner. Contributions may also be made by the account owner’s spouse, if they file a joint tax return. For example, a grandparent making a contribution to a parent-owned 529 plan is not eligible for the state income tax deduction. The parent cannot claim a state income tax deduction based on the grandparent’s contribution.

 

Was this article helpful?

About the author

Mark Kantrowitz is a nationally-recognized expert on student financial aid, scholarships and student loans. His mission is to deliver practical information, advice and tools to students and their families so they can make informed decisions about planning and paying for college. Mark writes extensively about student financial aid policy. He has testified before Congress and federal/state agencies about student aid on several occasions. Mark has been quoted in more than 10,000 newspaper and magazine articles. He has written for the New York Times, Wall Street Journal, Washington Post, Reuters, Huffington Post, U.S. News & World Report, Money Magazine, Bottom Line/Personal, Forbes, Newsweek and Time Magazine. He was named a Money Hero by Money Magazine. He is the author of five bestselling books about scholarships and financial aid, including How to Appeal for More College Financial Aid, Twisdoms about Paying for College, Filing the FAFSA and Secrets to Winning a Scholarship. Mark serves on the editorial board of the Journal of Student Financial Aid and the editorial advisory board of Bottom Line/Personal (a Boardroom, Inc. publication). He is also a member of the board of trustees of the Center for Excellence in Education. Mark previously served as a member of the board of directors of the National Scholarship Providers Association. Mark is currently Publisher of PrivateStudentLoans.guru, a web site that provides students with smart borrowing tips about private student loans. Mark has served previously as publisher of the Cappex.com, Edvisors, Fastweb and FinAid web sites. He has previously been employed at Just Research, the MIT Artificial Intelligence Laboratory, Bitstream Inc. and the Planning Research Corporation. Mark is President of Cerebly, Inc. (formerly MK Consulting, Inc.), a consulting firm focused on computer science, artificial intelligence, and statistical and policy analysis. Mark is ABD on a PhD in computer science from Carnegie Mellon University (CMU). He has Bachelor of Science degrees in mathematics and philosophy from MIT and a Master of Science degree in computer science from CMU. He is also an alumnus of the Research Science Institute program established by Admiral H. G. Rickover.

Full bio →

A good place to start:

See the best 529 plans, personalized for you

Helping families save for college since 1999
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