Compare 529 Plans

Summary

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.

The Vanguard 529 College Savings Plan, offered by Nevada, is available to residents of any state, and offers low costs, experience and easy-to-manage savings options.

Program type

Savings

Savings

How to enroll

Enroll directly with the program.

Enroll directly with the program.

Initial year of operation

1998, but substantially changed in November 2003

2002

State agency(ies)

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

Board of Trustees of the College Savings Plans of Nevada

Program manager

Ascensus College Savings

Ascensus College Savings

Program distributor

Vanguard Marketing Corporation

Vanguard Marketing Corporation

State residency requirements

None

None

Who can be a participant/owner in the program?

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

U.S. citizens and resident aliens at least 18 years old and UGMA/UTMA custodians.

Significant time or age restrictions imposed by the program

None

None

Maximum contributions

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

Accepts contributions until all account balances in Nevada's 529 plans for the same beneficiary reach $500,000.

Minimum contributions

No minimum.

The minimum initial contribution is $3,000 or $50 through an employer automatic investment plan. The minimum initial contribution for Nevada residents is $1,000 or $50 through employer automatic investment. The minimum subsequent contribution is $50.

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.

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

Age-based/Enrollment Year investment options

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.

The Target Enrollment Portfolios contain 12 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the account owner's risk tolerance or the number of years to expected enrollment. 10 portfolios shift to a more conservative investment allocation over time, eventually transferring to the Vanguard Commencement Portfolio.

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.

Select among 5 multi-fund individual portfolios and 15 single-fund individual portfolios.

Underlying investments

Vanguard mutual funds.

Vanguard mutual funds.

Enrollment or application fee

None.

None.

Account maintenance fee

None.

None

Program management fees

0.12% manager fee; fee includes underlying fund expenses.

0.11%

Expenses of the underlying investments

Not applicable, included in the program management fee.

Not applicable, 0.03% in the target enrollment portfolios; 0.03% to 0.04% in the static blend portfolios; and 0.01% to 0.31% in the individual portfolios.

Total asset-based expense ratio

0.12%

0.12% - 0.42%

Program match on contributions

None.

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.

Not applicable. Nevada does not have a personal income tax.

Nevada employers who make a matching contribution to employees participating in a Nevada 529 college savings plan are eligible for a 25% tax credit on matched contributions up to $500 per employee per year.

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.

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State definition of qualified expenses

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education or an apprenticeship program, 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, or education loan payments. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense.

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.

Not applicable. Nevada does not have a personal income tax.

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.

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

Yes

No

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

No

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.

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.

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.

Eligible educational institution, beneficiary, or account owner, as directed by the account owner.

Policy regarding participant/owner changes

Accepts requests to transfer account ownership.

Accepts requests to transfer account ownership.

Does participant have online password-protected access to account?

Yes

Yes

Can the complete enrollment process including funding be done online?

Yes

Yes

Telephone

1-877-697-2837

1-866-734-4530