Is New York 529 plan good?
The New York 529 College Savings Program stands out for its low fees and transparency. The total asset-based fee was recently reduced to 0.13% for each portfolio. Any account holder can enjoy several tax benefits, but New York families can deduct up to $10,000 from their state taxable income.
What is New York’s 529 plan?
New York’s 529 College Savings Program Direct Plan provides New York families with a tax-advantaged way to save for college, and allows City employees to save for college through easy payroll deductions. You may contribute as little as $15 or as much as you want for each investment option for an account per pay period.
How much can I contribute to NY 529 plan?
$5,000 per year
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.
Can NY 529 be used in other states?
Although it is called a college savings account, your 529 account can be used to pay for qualified higher-education expenses at any eligible institution in the United States or abroad.
What is the best 529 plan in New York?
New York’s 529 College Savings Program Direct Plan
| Plan name | New York’s 529 College Savings Program Direct Plan |
|---|---|
| Program type | Direct-sold |
| Fees and expenses | Enrollment fees: $0 Maintenance fee: $1.30/year for every $1,000 invested |
| Phone Number | 877-697-2837 |
| Website | www.nysaves.org |
Can I use 529 to buy a car?
Transportation and travel costs That means you cannot use a 529 plan to buy or rent a car, maintain a vehicle or pay for any other travel cost. If you do use a 529 distribution to pay for this type of expense, those distributions are considered non-qualified.
Can you roll over 529 plans?
Yes, the IRS allows one tax-free rollover of a 529 account per beneficiary in a 12-month period. Keep in mind that when you roll over to another state’s plan, some states require you to pay the state income tax on any contributions you previously received a deduction for.
Is rent a qualified 529 expense?
Can he use the 529 plan to pay for his portion of the rent, food and utilities? Yes, but not necessarily the full cost. As long as your son is enrolled at least half-time in a degree program, room and board qualify as eligible expenses to be covered by tax-free withdrawals from the 529 plan.
Can I withdraw money from 529 without penalty?
A 2017 law allows parents to withdraw up to $10,000 per year tax-free from a 529 plan for primary and secondary education tuition at private schools without incurring the typical penalty.