Beginning in September, fees in New York's 529 College Savings Program Direct Plan will be reduced once again, State Comptroller Thomas P. DiNapoli announced today.
"We're making it easier for New Yorkers of all income levels to invest in their loved ones' futures as the cost of a college education continues to rise," DiNapoli said. "As our program has grown, we've consistently reduced fees and now charge among the lowest fees in the country."
This is the tenth fee reduction in the last 15 years. The largest of the direct-sold 529 plans in the country, New York State's 529 Program is also ranked one of the top programs in the nation.
On September 27, 2018, the NY 529 fee drops to 0.13 percent, meaning participants will pay $1.30 in program fees each year for every $1,000 invested in the plan. The national average is more than three times higher. The fee reduction is applied automatically for both new enrollees and current participants.
NY's 529 College Savings Program manages approximately $30 billion in investments with more than one million accounts. In the last year, the program has simplified the enrollment process, eliminated minimum contribution requirements and increased the maximum account balance to better reflect college costs for the Program's Direct Plan.
New York taxpayers can deduct their annual contributions to NY's 529 Program up to $5,000 individually and $10,000 if filing jointly*.
Earnings on investments are free from both federal and state taxes as long as the funds are used to pay for expenses at an eligible post-secondary institution.
New York's 529 College Savings Program currently includes two separate 529 plans: the Direct Plan sold directly by the program and the Advisor-Guided Plan, sold exclusively through financial advisors. The Advisor-Guided Plan has different investments, fees and expenses as well as financial advisor compensation.
DiNapoli and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering New York's 529 College Savings Program.
Read or download the Direct Plan disclosure booklet here or go to: http://cdn.unite529.com/jcdn/files/NYD/pdfs/DisclosureBooklet.pdf
*May be subject to recapture in certain circumstances such as rollovers to another state's plan or nonqualified withdrawals.
Ascensus Broker Dealer Services, LLC, serves as Program Manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group, Inc., serves as the Investment Manager. Vanguard Marketing Corporation markets, distributes, and underwrites the Direct Plan.
For more information about New York's 529 College Savings Program Direct Plan, obtain a Disclosure Booklet and Tuition Savings Agreement at nysaves.org or by calling 877-NYSAVES (877-697-2837). This includes investment objectives, risks, charges, expenses, and other information.
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