Disclaimer: This a sponsored post. All opinions are my own.
The thought of paying college at the same times can be a very scary thing. I started putting small amounts away monthly in each of our children’s NY 529 Direct College Savings Plan; it is never too early to start saving! I recently attended a blogger information session hosted by Momtrends at the Institute for Culinary Education to learn more about the plan and ask any questions I had. I listened to the presentation. I really wasn’t sure how it all worked and now that I have learned more about the program, I feel great that I started early.
The NY 529 Direct College Savings Plan is a type of investment account that can be used for higher-education savings. Your earning grows federally ,tax-deferred; qualified withdrawals are tax-free and there are even additional tax benefits in some states, like New York where the benefit is a state tax deduction.
A NY 529 Direct College Savings Plan can be opened by anyone: parents, grandparents, relatives or even friends as long as that person is an US citizen or resident alien. The account owner picks the investments, assigns a beneficiary and is able to determine how the money is used.
The money in a NY 529 Direct College Savings Plan can be used to pay for anything that is a qualified higher-education expense including tuition: books, supplies, equipment. Here are some answers to some:
- Beneficiaries can attend college in any state, not just the state sponsoring the 529 plan
- There are no income restrictions to open a 529.
- The account owner—not the beneficiary—is always in control of the account, even when the beneficiary becomes an adult.
- There is no age limit for beneficiaries on a 529.
- A beneficiary can have more than one account. For example, parents can open an account for a child and grandparents can open an account for the same child.
Also a 529 Account can by used to pay for postsecondary trade and vocational schools, 2-4 year colleges and postgraduate programs. I also love that you can start with as little as $25, and you can transfer it if you move.