Securing the future of children is every well-meaning parents dream. New York’s 529 plans offer a flexible, salary-deductible ways of starting a college fund for your children that can be availed by even non-residents. A 529 college savings program is a tax-advantaged savings plan that enables you to invest for college free of federal and, sometimes, state income taxes. You can use this investment to pay for tuition, certain room-and-board expenses, books, supplies, and other qualified higher-education expenses. The recent decision to allow relatives to contribute to the plan makes it even more attractive.

New York’s 529 College Savings Program Direct Plan is open to any U.S. citizen or resident alien who has a valid Social Security number or taxpayer identification number. You must have a valid U.S. residential address that is not a post office box. The person on whose behalf you’re opening the account (the beneficiary) must also be a U.S. citizen or resident alien with a valid Social Security number or taxpayer identification number. There are no income restrictions or state residency requirements.

Starting contribution is only $25, minimum subsequent contributions are $25, or you can set up a payroll deduction plan. With this option, contributions are only $15. Contributions to any of New York’s 529 plans of up to $5,000 per year for an individual taxpayer, and $10,000 per year for married taxpayers 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. Non-resident participants will not receive the New York tax benefits; however they will still receive federal tax benefits. Contribution deadline is December 31 postmark. New York 529 plan allows contribution until the combined account balance reaches $235,000 in all of your New York 529 plans. The total amount in the plan can be higher as 529 plans typically increase the contribution limit over time, making it possible to be able to contribute more.

The 529 College Savings Program Direct Plan offers a comprehensive lineup of 16 investment options — three age-based options (conservative, moderate, and aggressive) and 13 individual portfolios. You may choose up to five investment options per account.

The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Direct Plan.

To learn more about the program and the tax benefits it offers, visit the official website

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