New 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 for NY’s 529 College Savings Program Direct Plan please follow below:
- Enroll in the Program first by going to the website at www.nysaves.org.
- Request a copy of the Payroll Deduction Authorization Form from the Program. You can obtain a copy of this form as follows:
For New Account Owners - Follow the step-by-step instructions when enrolling online until you reach the Funding Your Account page where you select Payroll Deduction. At the end of the enrollment process, you’ll be asked to print out a Payroll Deduction Authorization Form. This form is prefilled with your name, the total payroll deduction amount, your unique account number, and routing (ABA) number for the plan’s bank.
For Existing Account Owners – Log in to your account at www.nysaves.org, select Asset Management, and select Manage Payroll Deduction. Then simply print the Payroll Deduction Authorization Form.
For questions, you may call the Program toll-free at (877) NYSAVES / (877) 697-2837.
- 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
Get enrollment information from the Program Web site
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
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
You can choose from three age-based options and 13 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:
- Room and board
- 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, Ascensus College Savings, 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 Ascensus College Savings 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 Ascensus College Savings and Vanguard Marketing Corporation as distributors.
Visit the Program Web site
Enroll online or request a Program Enrollment Kit