It’s Never Too Early To Start: New York’s 529 Program

I believe in the power of our younger generation and that with the right education they can lead a path to a more beautiful world.

Education is the most powerful weapon which you can use to change the world.

-Nelson Mandela

I was thrilled to learn so much about New York’s 529 College Savings Program which works as a savings account towards higher education with tax advantages, plenty of flexibility, and reach across the country – even international. So on a beautiful day in Tribeca, I visited The Craft Studio with one of my favorite little guys, Lucien, to learn more about NY’s 529 program and all the benefits it provides. For starters….

• What is a 529 college savings plan?
  It’s a type of investment account you can use for higher-education savings. 529 plans are usually sponsored by states.

Personally, when times were tough my family encouraged me to focus on my education. They told me it was my ticket to a successful future. Years later, the same is still true and I encourage you to start saving towards college for your child (or any child you care about).

Education is the passport to the future, for tomorrow belongs to those who prepare for it today.

-Malcolm X

• What makes these savings vehicles so powerful?
  Tax savings. Your earnings grow federally tax-deferred, qualified withdrawals
  are tax-free,* and some states (like New York) have other tax benefits as
  well.

When it comes to our education, we owe it to our younger generations to make it as accessible as possible. What I like about the 529 program is that it is built to inform us on ways we can access higher education with our government’s help. Anyone who cares can open an account and one can start with as low as $1, plus there are no income restrictions to open an account.

• How can I use the money in a 529 account?
  You can use it to pay for anything that’s considered a qualified higher education expense, including tuition; books; supplies; equipment; expenses for the purchase of certain computer equipment, software, and computer related services; and certain room and board fees.

An investment in knowledge pays the best interest.

-Benjamin Franklin

Some interesting facts I learned along the way ↓

• Beneficiaries can attend college in any state, not just the state sponsoring the
  #529 plan.
• The account owner—not the beneficiary—is always in control of the account,
  even when the beneficiary becomes an adult.
• There is no age limit for beneficiaries of a 529 on a 529 plan.
• A beneficiary can have more than one account. For example, parents can
  open an account for a child and grandparents can open an account for the
  same child.
• Advantages of a 529: tax deductions, tax-deferred growth, and tax-free
  withdrawals.
• Recurring contributions are a convenient way for account owners to set up
  regular contributions.
• 529 funds can be transferred to a close relative of the beneficiary if he or she
  doesn’t need the money.

It’s incredible who we can become when given the tools to excel. For me, equal education is just that!

Knowledge is power. Information is liberating. Education is the premise of progress, in every society, in every family.

-Kofi Annan

You have to stay in school. You have to. You have to go to college. You have to get your degree. Because that’s the one thing people can’t take away from you is your education. And it is worth the investment.

-Michelle Obama

Disclaimer: Compensation was provided by NY 529 Direct via Momtrends. The opinions expressed herein are those of the author and are not indicative of the opinions of NY 529 Direct or Momtrends.