As a parent, you dream of a bright future for your children. Part of that dream includes seeing your loved ones graduate—without a lot of debt.
The prospect of paying college bills may feel overwhelming, and that's completely understandable. Luckily, however, you have a powerful savings option like the NY529 Direct Plan. Plus, you can use the free online planning resources available on NY529 Direct Plan website @ nysaves.org to help you reach your goal.
See how much college could cost
How much will college cost when your kids are ready to attend? Use the calculator under “How much could college cost in the future?" to estimate future costs for both public and private schools.
Learn how much you need to save
This tool “How much do I need to save” estimates how much you may need to invest each month. If you can't save the recommended amount right now, don't be discouraged. Just save what you can. Remember, every dollar you save is one less that will have to potentially be borrowed down the road!
Invest wisely
Many 529 plans offer simplified investment selections based on whether you're a conservative, moderate, or aggressive investor. These portfolios automatically adjust their holdings based on your child's age. That means they invest more in stocks (which have higher risk but higher return potential) when a child is young and shift more money to lower-risk bonds and cash (like a money market account) later on.
- If you're not sure which type of investor you are, find out here.
Calculate short-term tax savings
If you are a New York state taxpayer, don't forget your tax savings each year. Since you've chosen a 529 plan that allows you to deduct your contributions, you can calculate those state income tax savings based on your annual contributions to the plan.
Use these resources regularly to stay on track
Planning for a major expense like education takes years, so bookmark these resources for future use. In the months and years ahead, they may help as you work to make those college dreams a reality.
Contributions of up to $10,000 are deductible annually from New York State taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually. New York State tax deductions may be subject to recapture in certain circumstances such as rollovers to another state's 529 plan, nonqualified withdrawals, withdrawals used to pay elementary or secondary school tuition, as described in the Disclosure Booklet and Tuition Savings Agreement. State tax benefits for non-resident New York taxpayers may vary. Please consult your tax advisor about your particular situation.
You must make a contribution before the end of a given calendar year for it to be deductible for that calendar year. If you send your contribution by U.S. mail and it's postmarked on or before December 31, we'll treat your contribution as having been made in the year in which it was sent.
Investment returns are not guaranteed, and you could lose money by investing in the Direct Plan.
