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New York's 529 College Savings Program

New York's 529 College SavingsNew York's 529 College Savings Program Direct Plan provides New York families with a tax-advantaged way to save for college, and allows City employees to save for college through easy payroll deductions.

You may contribute as little as $15 or as much as you want for each investment option for an account per pay period. You may add, change, or stop your payroll deductions at any time.

Starting Payroll Deductions
To start payroll deductions to an existing Program account:

  • Enroll in the program by going to NYCAPS Employee Self-Service (ESS) https://nyc.gov/ess
  • Obtain a City of New York, New York's 529 College Savings Program form: select "New Deduction Plan" and submit it to your agency's College Savings Coordinator (check with your Personnel office). Include:
    • The College Savings Account Name (your name as it appears on the account)
    • Account Number
    • Amount to be Deducted Per Pay Period
  • Request a copy of the Payroll Deduction Continuation or Authorization Form from New York's 529 College Savings Program Direct Plan. You can obtain a copy of this form as follows:
    • Payroll Deduction Continuation Form: If you were an account owner prior to November 14, 2003, you may have already received a Payroll Deduction Continuation Form in the mail. Review this form, sign, date, and return it - along with a completed City of New York, New York's 529 College Savings Program form - to your agency's College Savings Coordinator.
    • Payroll Deduction Authorization Form: If you are an existing account owner and did not receive a copy of the Payroll Deduction Continuation Form, or if you are enrolling in the Program for the first time, then you can obtain a copy of the Payroll Deduction Authorization Form online at www.nysaves.org, or by calling the Program toll-free at (877) NYSAVES (877-697-2837).


Get enrollment information from the Program Web site
Download the Savings Program Enrollment Form (PDF)


Ways to Contribute to the Program
For additional information on acceptable forms of contributions, you may visit the Program Web site www.nysaves.org or call the Program toll-free at (877) NYSAVES (877-697-2837). You may also refer to the Program Description and Tuition Savings Agreement for a more detailed description of acceptable contributions.

Visit the Program Web site

Eligibility
Anyone - a parent, grandparent, relative, or friend - can set up an account for a future college student, and there are no restrictions based on age, income, or state of residence. You can even set up an account for yourself.



Tax Advantages of the Program
Significant tax advantages are an attractive feature of the Program.

  • Unlike a taxable account, your assets compound tax-free, giving you better potential for growth over the long-term (Contributions are not deductible for federal income tax purposes.)
  • Your withdrawals are free from federal and New York State income tax when used to pay for qualified education expenses (Qualified Withdrawals). For example, tuition, fees, room and board, books, supplies, and equipment required for enrollment or attendance at any eligible post secondary school in the world.
  • You can receive a New York State income tax deduction of up to $5,000 ($10,000) for married couples filing jointly).

If you are a resident or taxpayer of another state, you should consider whether that state offers a 529 Plan with tax or other benefits that are not available through this Program.

Contributions to this program are not pre-tax and will not be reflected on your W-2 Wage and Tax Statement. However, tax deductions may be reflected when you file your New York State tax returns, and will not be reflected each pay period.
Learn more on the Program Web site


Investment Options
You can choose from three age-based options and 12 individual portfolios, giving you significant flexibility in managing your investment strategy.

Learn more on the Program Web site


Accessing Your Account Information
You can access your account balance, transaction history, and investment performance three ways:

  • Online account information from the Program Web site www.nysaves.org
  • Quarterly statements sent by mail or email
  • A phone call to the Program at (877) NYSAVES (877-697-2837) for information from an associate


Log on to your account through the Program Web site


Using Proceeds from the Account
Proceeds from your account can be used to pay tuition and other qualified higher education expenses of your beneficiary at any eligible undergraduate or graduate public or private college or university or trade, vocational, or professional school.

Qualified higher education expenses include:

  • Tuition
  • Fees
  • Room and board
  • Books
  • Supplies
  • Equipment required for enrollment or attendance at any eligible post secondary school in the world

Program Management Information
The Comptroller of the State of New York and the New York Higher Education Services Corporation (HESC) together are jointly responsible for implementing the Program.

The program manager, Upromise Investments, Inc., is responsible for the day-to-day operations of the Program.

The investment manager, The Vanguard Group, Inc., is responsible for the investment of Direct Plan assets.


Invest Wisely and Knowledgeably
Carefully read the enrollment information, along with the risks of investment, before opening an account. Investing in the Direct Plan involves certain risks, including the possibility that you may lose money over short or even long periods of time.

None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, or Upromise insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio.

The value of your account will vary based on market conditions and the performance of the investment options you select, and may be less or more than the amount you deposit. Tax benefits are subject to certain limitations and certain withdrawals are subject to federal, state, and local taxes.

If you are a resident or taxpayer of another state, you should consider whether that state offers a 529 plan with tax or other benefits that are not available through this Program. You should also consult your tax advisor. Investments may be made through Upromise Investments, Inc., and Vanguard Marketing Corporation as distributors.

Visit the Program Web site
Enroll online or request a Program Enrollment Kit

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