Features,The,529,College,Savin education Features Of The 529 College Savings Plan NY


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The New York State's 529 plan is known more commonly as the College Savings Plan. As the name suggests, is it a savings plan that is run by the Vanguard Group. The following are some of the features of the 529 College Savings Plan NY:1.The 529 College Savings Plan NY is good for state tax deduction. All contributions that are made by the account owners towards this plan are partially deductible. However, there is a limitation on the maximum amount that can be held for deduction. If a person is filing singly into the account, then the deduction can be up to $5,000, but if a married couple is filing jointly, then deductions of $10,000 can be achieved.2.The plan is open for both residents and well as nonresidents. Both these categories can open the account with a contribution of as less as $25. Subsequent purchases into the plan must be of the same amount, i.e. $25.3.The limit for making maximum contributions into the plan is $235,000, which is quite a low figure compared to the plans of other states. That means the plan is not very good for people who are investing primarily for getting tax deductions.4.Both residents and nonresidents can enter into the plan directly. There is no broker needed for opening an account with the 529 College Savings Plan NY.5.There is an automatic investment plan offered with the 529 College Savings Plan NY. This plan requires annual contributions to be made. The automatic investment plan can be opened with a sum as low as $25, and subsequent purchases of $25 can be made.6.Though the maximum contribution is low, the plan is cheap to maintain. There is no enrollment fee to open the account, and there is no annual maintenance fee required to keep up with the plan. There is also no program management fee.7.There are no penalties levied with the plan for cancelling the account, or for changing the names of the beneficiaries or even the account owners.8.All qualified withdrawals, i.e. withdrawals made for the purpose of paying the tuition fees of the beneficiary are without any penalty. However, nonqualified withdrawals will attract a penalty of 10% of the total value of the plan. The 529 College Savings Plan NY is a good plan for someone who is primarily looking at investing for the college expenses of their children. It is not a very good plan for those who are investing for tax deductions, because plans in other states have a higher maximum contribution limit, which can be shown for tax deduction. Article Tags: College Savings Plan, College Savings, Savings Plan

Features,The,529,College,Savin

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