Income Tax Advantages
What makes 529 plans like New York's Advisor-Guided Plan such a popular way to save for college is the tax benefits they offer compared to traditional savings and investment accounts. Regardless of your income or tax bracket, you can take advantage of the federal and, if available, state tax incentives offered by these plans.
The power of tax-free growth
With the Advisor-Guided Plan, investment earnings compound on a tax-deferred basis, and qualified withdrawals are entirely free from federal and state income taxes.1 And because your account is tax-deferred, it has the potential to grow more quickly than taxable investments earning the exact same returns.
Accumulate $23,000 more with a tax-free 529 plan
Investment growth over 18 years
Additional State Tax Benefits
In many states, residents or state tax payers get a full or partial state income tax deduction for investing in the state-sponsored 529 plan. In others, contributions to any 529 plan are eligible for the state's income tax deduction, and residents are not required to choose the in-state plan to get the benefit.
Learn more about the state tax benefits offered to New York State tax payers. Before investing, consider whether your or the beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
1 Earnings on federal nonqualified 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, or withdrawals used to pay elementary or secondary school tuition, registered apprenticeship program expenses, or qualified education loan repayments as 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.
Q. How do I open an Advisor-Guided Plan account?
A. You may open an account by contacting any broker or financial professional.