We were invited by MomTrends to The Artfarm, for an afternoon of fun exotic animals for the littles while the parents were educated on College Savings with the NY 529 Program.
I couldn’t imagine my girly losing her smile because we were unable to afford the continued education she desires. So I was thrilled to learn how to plan for my children’s education, while the she was tucked away in the next room engaging with the exotic animals from The Antfarm.
My Quick Tips on the NY 529 Program:
First let me explain what a NY 529 plan is. It’s a type of investment account you can use for higher-education savings. 529 plans are usually sponsored by states. What makes these savings vehicles so powerful is your earnings grow federally tax-deferred, qualified withdrawals are tax-free,* and some states (like New York) have other tax benefits as well. Up to $10,000 is deductible annually from New York State taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually.
Grandma, Grandpa and aunt Mary can all open a 529 account – as long as he or she is a U.S. citizen or a resident alien. They can also contribute to a 529 plan making for a great gift for birthdays, holidays, etc. in lieu of a traditional object, it’s the gift that keeps giving. An account can be created with as little as $25, so basically what you would give anyone in a birthday card, you can place into a NY 529 account, and have the relief to know your gift will go much further than you could ever imagine. You can invite friends and family to contribute to your account by sharing a special Ugift code. Ugift also provides printable gift coupons that you can distribute in
person or by mail. You can learn more here: https://www.ugift529.com/home.html
If your child is fortunate enough to receive a scholarship you are ahead of the game! As long as the equivalent amount of the scholarship is withdrawn from the 529 account, the money would not be subject to a penalty. However, you would owe income taxes on any earnings since you had the benefit of tax free growth.
What if you woke up one morning and decided you are ready to return to school yourself? You could easily change the beneficiary to yourself, a sibling or another relative without any fees. Although, I am already planning for my kids to be full time actors, and both have already joined the screen actors union, this is one tidbit I will not share with them. So lets keep this one on the hush! As I stated before education comes before everything else.
I am imagining a holiday without the clutter of presents everywhere, taking up space we no longer have, and family members who directly gift/contribute to our children’s college fund. Who is with me?!
For me the NY529 College Savings Program is the gift that continues to give, I hope you sign up and feel the same.