We were hosted by The Craft Studio, where the boys had the time of their lives making art. If you don't know my boys, they are both huge on art. Anything art related they are so excited and passionate about. So while they had fun with colors, mom was getting all the deets on how to go about saving for their future...whether they decide to be the next Picasso's or the the future educators of our world. I learned a lot and noticed that I was wrong about a lot of myths I had heard about college savings.
Let me answer some FAQs for you down below :
Q: What is a 529 college savings plan?
A: It's a type of investment account you can use for higher-education savings.
529 plans are usually sponsored by states.
Q: What makes these savings vehicles so powerful?
A: Tax savings. Your earnings grow federally tax-deferred, qualified withdrawals
are tax-free,* and some states (like New York) have other tax benefits as
Q: Can others help contribute to the plan?
A: Yes! Contributions to a 529 plan make a great gift for birthdays, holidays, etc.
in lieu of a traditional toy. You can invite friends and family to contribute to
your account by sharing a special Ugift code on Twitter or by email. Ugift also
provides printable gift coupons that you can distribute in person or by mail.
You can learn more here: https://www.ugift529.com/home.html
Q: Who can open a 529 plan account?
A: Just about anybody can open a 529 account—parents, grandparents, other
relatives, friends—as long as he or she is a U.S. citizen or a resident alien. As
an account owner, you'll pick investments, assign a beneficiary, and
determine how the money is used.
Q:How can I use the money in a 529 account?
A: You can use it to pay for anything that’s considered a qualified higher-
education expense, including tuition; books; supplies; equipment; meal plans,
for the purchase of certain computer equipment, software, and computer-
related services; and certain room and board fees.
Q: Can 529 accounts only be used to pay for college?
A: No. Your 529 account can be used to pay for qualified higher-education
expenses at any eligible educational institution, including:
- Postsecondary trade and vocational schools.
- 2- and 4-year colleges.
- Postgraduate programs.
Your children can attend college in any state, not just the state sponsoring the
#529 plan. Also, There are no income restrictions to open a #529 account. An “eligible education institution” is a school that has been assigned a federal school code by the Department of Education.
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 of a 529 on a 529 plan. 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. Advantages of a 529: tax deductions, tax-deferred growth, and tax-free withdrawals. Recurring contributions are a convenient way for account owners to set up regular contributions, and 529 funds can be transferred to a close relative of the beneficiary if he or she doesn’t need the money, such as a sibling that will be entering college.
After this super informative event I ran home and opened up a plan for my little ones because I was completely sold on the idea. I know I made the right choice for them, and I feel so much more relived now than I did before. I know they are in better hands, and I am so excited to keep watching them grow and knowing they have a promising future ahead of them thanks to New York’s 529 College Savings Program Direct Plan.
For more information about New York’s 529 College Savings Program Direct Plan, obtain a
Disclosure Booklet and Tuition Savings Agreement at www.nysaves.org or by calling 1-877-
NYSAVES. This includes investment objectives, risks, charges, expenses, and other
information. You should read and consider them carefully before investing.
• NY 529 Direct site: www.NYSaves.org
• NY 529 Direct Twitter: www.twitter.com/NY529Direct
• NY 529 Direct YouTube page: www.youtube.com/NY529Direct
• NY 529 Direct Facebook page: www.facebook.com/NY529Direct
• College savings planner (tool): http://www.archimedes.com/vanguard/csp.phtml
• 529 state tax deduction calculator:http://www.archimedes.com/vanguard/stdc.phtml
• NY 529 Direct articles: https://www.nysaves.org/home/basics-of-529s/articles.html
**** #AD: Compensation was provided by NY 529 Direct via Momtrends. The
opinions expressed herein are those of the author and are not indicative of
the opinions of NY 529 Direct or Momtrends.