INSIGHTS & IDEAS

Consider a NYS 529 Plan

The benefits include:

• Protection from creditors

• Appreciation is not taxed if funds used for qualified higher education expenses.

• Funds in 529 plans are not counted as available family contributions in applying for student aid.

• The first $10,000 contributed each year is deductible for NY State (Up to an approximate $800 tax savings)

• Fund may be transferred at any time to a different family member.  In essence funds can be passed down to grandchildren and great grandchildren.

In the event withdrawals are not used for qualified education expenses, the appreciation withdrawn is taxably at the then prevailing rate, plus a 10% federal penalty.

NY State investments are through Vanguard.  Past performance can be viewed through the following link:

 https://www.nysaves.org/nytpl/fundperform/fundPricePerform.do