About 529 Plans
A college education has become a necessity for any family wishing to help their children maximize their talents and realize their full potential. Yet, for most families, the question is no longer whether your loved ones will attend college—but how to pay for it. That’s why finding the most appropriate vehicle to save for college is more critical than ever before.
529 College Savings Plans
Named after Section 529 of the Internal Revenue Code, 529 plans are state-sponsored plans that allow families to invest for college-bound beneficiaries on a tax-advantaged basis. Your investments grow tax deferred for the life of the account, and withdrawals are tax free when used to pay for qualified expenses.1 A 529 plan also offers substantial estate and gift tax benefits, making it an ideal gift from grandparents or other family members.
In addition to 529 savings plans, alternative savings vehicles include Coverdell Education Savings Accounts (formerly Education IRAs), Uniform Gifts to Minors/Uniform Transfers to Minors (UGMA/UTMA) accounts, Series EE savings bonds and taxable investment accounts such as mutual funds or bank savings accounts. Although each of these options offers distinctive features, 529 savings plans can provide additional benefits that may exceed these alternatives. Compare these various savings vehicles to get a better understanding of your options.
New York’s 529 Advisor-Guided College Savings Program
New York’s 529 Advisor-Guided College Savings Program (the "Advisor-Guided Plan" or the "Plan") is a college savings plan sponsored by the State of New York that provides a tax-advantaged way for families to save for the future costs of higher education.
As a participant, you receive more than investments from an experienced investment manager. You also gain insights that can only come from more than a century of helping clients like you work towards their goals. From website resources to investor services, the experienced professionals at J.P. Morgan share their best ideas on making informed, intelligent decisions with your college dollars.
1Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. New York State tax deductions may be subject to recapture in certain additional circumstances such as rollovers to another state's 529 plan, withdrawals used to pay elementary or secondary school tuition, qualified education loan repayments, or rollovers to a beneficiary’s Roth IRA accounts described in the Disclosure Booklet and Tuition Savings Agreement. State tax benefits for non-resident New York taxpayers may vary. Tax and other benefits are contingent on meeting other requirements. Please consult your tax professional about your particular situation.
The benefits of working with a financial advisor
Meet with a financial advisor to learn more about how a 529 plan could help you meet your unique college savings needs.
The guidance of an advisor can be invaluable, and together you can determine your goals, select the appropriate investments and discuss ways to maximize 529 plan benefits.
Q. How do I open an Advisor-Guided Plan account?
A. You may open an account by contacting any broker or financial advisor.