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.Footnote1
And because your account is tax-deferred, it has the potential to grow faster than taxable investments earning the exact same returns.
Turning regular investments in $119,000 for college