Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Understanding New York’s 529 College Saving Plan

By James Garfinkel Subscribe to RSS | April 11th 2012 | Views:
loading
 
  



A 529 college savings plan is a tax-deferred program that enables parents, grandparents and others to save for college federal income tax-free. New York State taxpayers also have another important advantage – they can deduct up to $5,000 ($10,000 for a married couple) of 529 plan contributions. 529 plan contributions are not deductible for federal income tax purposes. New York’s 529 College Saving Plan can be used to pay for tuition, many room-and-board expenditures, books, supplies, and certain other qualified higher-education expenses.

New York's 529 plan is open to any U.S. citizen or legal resident who has a valid Social Security number or taxpayer identification number (TIN). An account owner must have a valid residential address (other than a post office box). The future college student (sometimes referred to as the beneficiary) must also be a U.S. citizen or legal resident a valid Social Security number or TIN. Any eligible individual can open an account, there are no income or state residency requirements.

The money can be used to pay tuition, fees, books, certain room-and-board expenses, supplies, and other qualified higher-education expenses at any eligible most colleges, universities, graduate or vocational schools in the United States and abroad.

Unlike other savings and financial products like a brokerage account or a juvenile life insurance policy, earnings on nonqualified withdrawals from a 529 plan may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes.

529 plans have generous contribution limits, designed to keep up with the rapidly increasing cost of college. A parent or grandparent, for example, can contribute on behalf of a 529 plan beneficiary until the total balance of all 529 college savings plan accounts held for the same beneficiary reaches a balance of $375,000.

Financial planning experts generally recommend a diversified portfolio of equity and fixed income products to achieve growth with lower risk and volatility. New York's 529 College Savings Program offers sixteen different investment choices – from age-based portfolio options that automatically rebalance to a more conservative allocation when the child is getting ready for college and thirteen individual portfolios that an owner can adjust according to his or her own investment strategy and risk tolerance.

The most important thing is to start saving early and often. Compounded tax-advantaged growth has a powerful effect on personal savings and taking the important step to start a college savings program can help make the dream of a college education a reality.

James Garfinkel - About Author:
James Garfinkel, founder and CEO of New Amsterdam Life Insurance Foundation. Find out more about 529 College Savings Plans and Child Life Insurance quotes at http://www.newamsterdamlife.com

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/insurance-articles/understanding-new-york-s-529-college-saving-plan.htm

Related Insurance Articles Subscribe to RSS

Why we should acquire Commercial liability insurance
Published by Andrew Edwards on December 12th 2011 | Insurance
Since the competition has reached a significant value, we have to be quite selective when it comes...
 
Cheap classic car insurance – tips to find the best company
Published by Anneshirley on March 20th 2012 | Insurance
Having a classic car is a great source of pleasure. No matter for what purpose you use your classic ...
 
Look at us and buy affordable business insurance
Published by Andrew Edwards on March 14th 2012 | Insurance
While making choices in for business insurance you should not avoid us...
 
Important considerations with regard to backpackers insurance
Published by Marry James on February 24th 2012 | Insurance
One of the greatest risks that a person can take is to go on an adventurous trip worldwide without g...
 
Best deals on auto insurance in Oregon
Published by Ronnie Brain on January 16th 2012 | Insurance
All drivers are required to carry their auto insurance when driving in Oregon. It is illegal to driv...
 
Dental insurance plans
Published by Lessardcasey on January 13th 2012 | Insurance
Most people have experienced the unpleasant feeling of a cavity or other nagging tooth problems. How...
 
How to go about getting cheap van insurance
Published by Gregorypeck on March 20th 2012 | Insurance
There is no doubt that if you have a van, you need van insurance coverage. As you probably know, van...
 
Get cheap car insurance in Montana
Published by Autoinsurances on January 16th 2012 | Insurance
All drivers using Montana roads have to get insurance for their vehicles. This is a requirement by t...
 
Clarion Event liability insurance covers host of resources
Published by Michel Jordan on February 1st 2012 | Insurance
The article describes the public liability insurance for musicians offered by Clarion Associates to ...
 
Benefits of searching the best insurance policy quotes online
Published by Andy Robert on December 27th 2011 | Insurance
Getting online for insurance policy of your choice is one of the safest and easiest method while goi...
 
Vauxhall Car Insurance is best way to get insurance
Published by Ahmadgill on January 17th 2012 | Insurance
Vauxhall Car Insurance Quote can give you help if you want to get insurance for your vehicle. It is ...
 
Best Individual medical health insurance
Published by Lessardcasey on February 11th 2012 | Insurance
Individual medical health insurance can be a financial burden, but for many people it is a necessary...
 
Efficient ways to get cheap car insurance
Published by Robmichae on March 2nd 2012 | Insurance
It was never this easy to get the car insurance quotes. With your fast internet browsing speed you c...
 
Getting best deals on cheap auto insurance in Nevada
Published by Alabamaauto Insurances on January 17th 2012 | Finance
There are hundreds of resources that can help you to win that much desired cheap auto insurance in N...
 
What will influence the cost of your income protection insurance?
Published by Jenymorison on December 9th 2011 | Insurance
If you have decided to purchase income protection insurance for yourself then surely it can prove to...
 
Getting the best Georgia auto insurance
Published by Auto Insurances on January 17th 2012 | Finance
As the state of Georgia is very notorious for having a big number of car accidents and also incident...
 
Tips to find cheap classic car insurance
Published by Anneshirley on March 20th 2012 | Insurance
Classic car insurance coverage is different from the regular type of insurance coverage. The definit...
 
 
Online health insurance quotes
Published by Lessardcasey on February 11th 2012 | Insurance
Comparing health insurance quotes to find the best deal for you can be done through HealthInsuranceQ...
 
Car insurance and its benefits.
Published by Robert King on January 26th 2012 | Finance
Car insurance is an understanding between the insurer and the insured where the insurer promises to ...