May 29 is National 529 College Savings Day and New Yorkers are encouraged to start their children on the path to college by opening or contributing to an existing 529 College Savings plan. An investment in a child’s future can begin with as little as $25 and result in a big savings when the child is ready to go to college. Recent studies show that when children have money saved for college, no matter how much, they are more likely to further their education beyond high school and be successful.

Any US citizen or resident alien with a valid Social Security Number or Taxpayer Identification Number can open an account on behalf of a beneficiary, so parents, grandparents, other family members and friends can open a 529 College Savings Plan to give a loved one a head start on their education.

Money from the account can be used for tuition, certain room-and-board expenses, fees, books, supplies and equipment and other qualified higher-educations expenses at any eligible educational institution.

New York taxpayers who are account owners in New York’s 529 College Savings Plan can contribute to the Direct Plan and claim a deduction of up to $5,000 and married couples filing jointly can claim a deduction of up to $10,000 each year. Qualified withdrawals are exempt from both federal and state income taxes.

The plan, sponsored by the State of New York, features a broad array of investment options, including three age-based investment options that automatically rebalance the assets in the portfolio to become more conservative as the child approaches college age.

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. Upromise Investments, Inc., and Upromise Investment Advisors, LLC, serve as Program Manager and Recordkeeping and Servicing Agent, respectively, and are responsible for day-to-day operations, including effecting transactions.

New York's 529 College Savings Program currently includes two separate 529 plans. The Direct Plan is sold directly by the Program. You may also participate in the Advisor Plan, which is sold exclusively through financial advisors and has different investment options and higher fees and expenses as well as financial advisor compensation.

For more information about New York’s 529 College Savings Program Direct Plan, obtain a Program Brochure and Tuition Savings Agreement at www.nysaves.org or by calling 1-877-697-2837. This includes investment objectives, risks, charges, expenses, and other information. You should read and consider them carefully before investing.