Getting started
What is New York’s 529 Advisor-Guided College Savings Program?
Our 529 plan offers a tax-smart way to save for college. It’s sponsored by the state of New York but available to families across the U.S.
What are the Plan’s tax benefits?
Investment earnings and withdrawals are tax free when used for qualified education expenses.1 In addition, 529 plans offer special gift and estate tax benefits not available in other accounts. Finally, contributions are deductible from state income taxes for account owners living or working in New York.2
How does the Plan affect financial aid?
Plan accounts have very little impact on federal financial aid eligibility when owned by parents – and no impact at all when owned by grandparents, aunts, uncles or anyone else.
What are the Plan’s fees and expenses?
The $15 annual account maintenance fee is waived when an account owner accumulates at least $25,000 for a beneficiary. Each Plan portfolio includes a 0.25% annual management fee, along with expenses for the mutual funds and ETFs in the portfolio. Please see the Disclosure Booklet for details.
What can I do with unused funds?
Effective January 1, 2024, 529 account owners will be able to rollover savings from their 529 plan account into a Roth IRA without incurring any federal income tax or penalty. The Roth IRA must belong to the same beneficiary, and the lifetime rollover limit is $35,000. To be eligible, the 529 account must have been open for at least 15 years and the rollover amount must have been in the 529 account for 5 years.
529 to Roth IRA rollovers will also count toward annual Roth IRA contribution limits, but Roth IRA income limits do not apply for this type of contribution. For more information, please read the Disclosure Booklet.
Who can open an account?
The Plan is available to anyone with a Social Security number or Tax ID – no matter where they live or what their income. Even entities such as trusts can establish an account.
How do I open an account?
Simply contact your financial professional or call 1-800-774-2108. You can get started with as little as $25 per month automatically deposited from your bank account or paycheck.
Who controls the account?
Regardless of the beneficiary’s age, the account owner has full control over investing and spending Plan assets – so money meant for college actually goes toward college.
I’m a JPMorgan Chase employee. Can I participate in the Plan?
Yes, the Plan is open to all U.S. employees who wish to help loved ones attend college. To learn more and open accounts, please visit the JPMorgan Chase intranet site at go/529.
Who can be a beneficiary?
You can invest for anyone of any age planning to attend college in any state. It could be a child, grandchild, niece, nephew, friend – even yourself or another adult.
Can I invest for more than one beneficiary?
Yes, but you must open a separate Plan account for each beneficiary.
Can I change the beneficiary on my account?
Yes, 529 plans are very flexible. You can typically change the beneficiary to another eligible family member at any time without taxes or penalties.1
Are there any age limits on beneficiaries?
No, you can contribute for beneficiaries of all ages, including adults. There are also no mandatory Plan withdrawals at any age.
What if my beneficiary receives a scholarship or doesn’t attend college?
Consider these options if you have unspent money in a Plan account:
- Keep the account open in case your beneficiary decides to attend college later in life, enroll in graduate school or someday transfer money to their own children.
- Roll over up to $35,000 to a tax-free Roth IRA in the beneficiary’s name to provide a head start on retirement savings.3
- Change the account beneficiary to another eligible family member.
- Make a nonqualified withdrawal, subject to federal income taxes and an additional 10% federal penalty tax on any investment earnings. State taxes may also apply. Note: Withdrawals equal to any scholarships received don’t incur the 10% penalty.
Building my account
How can I contribute to my account?
The easiest way is to set up automatic deposits from a bank account or paycheck. You can also contribute by check, one-time electronic bank transfer, rollovers from another 529 plan or transfers from other accounts.
Can other people contribute to my account?
Yes, family and friends can contribute to your account or open their own if they want the tax benefits and control.
How much can I contribute?
Contributions can continue until all Plan account balances for a beneficiary reach $520,000. After that, accounts can grow only through investment earnings.
Can I fund my account with transfers from other education plans?
Yes, you can make tax-free rollovers from another 529 plan for the same beneficiary once every 12 months. You can also transfer money from UGMA/UTMA accounts, Coverdell accounts and qualified U.S. savings bonds, although taxes and restrictions may apply in some cases. Consult your financial and tax professionals for more information.
Are contributions tax deductible?
Account owners who live or work in New York can deduct up to $5,000 in Plan contributions from state income taxes each year if single, and $10,000 if married filing jointly.2 These limits apply to the taxpayer, not to each individual beneficiary. For example, a married couple with three children can deduct no more than $10,000, even if they contributed more during the year.
Some states outside New York allow deductible contributions to any 529 plan, including ours. Your financial or tax professional can provide more details.
What’s the deadline for making tax-deductible contributions before year-end?
Electronic bank transfers can be made up until 11:59 pm on December 31. Contributions via check must be postmarked by December 31. Note: Your financial professional may have different deadlines if contributions are made directly from your brokerage account.
What are the Plan’s investment options?
We offer three different approaches to accommodate the way you like to invest:
- Age-based portfolios if you want your investment mix to automatically become more conservative as college gets closer
- Asset allocation portfolios if you want your investment mix to stay roughly the same over time
- Individual portfolios if you want to custom-build your own investment mix
Who oversees my investments?
A dedicated team of J.P. Morgan experts builds your portfolio, selects investments and makes adjustments as market conditions change.
Can I change my investments?
Yes. Federal law allows you to move existing Plan assets to different investments twice per calendar year or whenever you change account beneficiaries. You can change how future contributions are invested at any time.
How can I see how my investments are performing?
Simply click here to view the latest investment results.
Can family and friends make gifts to my account?
Yes, contributions to 529 accounts make great gifts for birthdays, holidays, graduations and other milestones.
What are the gift limits?
Only 529 plans allow five years of tax-free gifts in a single year – up to $95,000 per beneficiary from singles and $190,000 from married couples filing jointly.4
What is Ugift?
Ugift® is a free service that lets Plan account owners invite family and friends to celebrate special occasions with the gift of college savings.
Paying for college
What qualifies as an education expense with 529 plans?
Investment earnings and withdrawals are tax free when used for two- and four-year college, graduate school, trade school, apprenticeship and credential programs, student loan payments, and K-12 costs.1
Under New York State law, distributions for K-12 tuition are considered nonqualified withdrawals and will require the recapture of any New York State tax benefits that have accrued on contributions. However, the New York State Department of Taxation and Finance has not yet determined whether a distribution to pay for the expanded K-12 expenses would be considered a qualified or nonqualified withdrawal for New York State tax purposes. Please consult with a qualified tax advisor about your personal situation.
What is a recognized credential program? A recognized credential program is any program to obtain a recognized credential that meets one of the following criteria:
- Listed on a state Workforce Innovation and Opportunity Act (WIOA) program list (e.g., New York’s eligible training providers can be found at: https://apps.labor.ny.gov/ETPL_V2/home.xhtml).
- Included in the public directory of the Web Enabled Approval Management System (WEAMS) of the Veterans Benefits Administration (see: https://inquiry.vba.va.gov/weamspub/buildSearchInstitutionCriteria.do).
- Requires an exam to obtain or maintain the credential, where the exam is developed or administered by a widely recognized credentialing organization, and the program is recognized as adequate preparation for the exam.
- Identified by the U.S. Secretary of the Treasury after consultation with the U.S. Secretary of Labor.
What is a recognized credential?
A recognized credential is:
- An industry-recognized credential, including:
- Any postsecondary employment credential from a program accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute.
- Any postsecondary employment credential listed in the Department of Defense’s Credentialing Opportunities On-Line (COOL) directory or by any branch of the Armed Forces.
- Any postsecondary employment credential identified as industry-recognized by the Secretary of the Treasury after consultation with the Secretary of Labor.
- A certificate of completion from certain apprenticeship programs.
- Any occupational or professional license issued or recognized by a state or the federal government, or any certification required to obtain such a license.
- Any recognized postsecondary credential as defined by the Workforce Innovation and Opportunity Act (WIOA), including industry-recognized certificates or certifications, apprenticeship completion certificates, licenses, or associate/bachelor’s degrees.
What college costs can I pay tax free from my account?
Qualified college expenses include tuition, fees, room and board, books, supplies, computers, and special needs services.1
Does my beneficiary have to attend college in New York?
No, Plan assets can be used at any accredited public or private college in the U.S. and overseas.
Can I use my account to pay student loans?
Yes, up to $10,000 in Plan assets can go toward student loan payments for account beneficiaries and each of their siblings.
How do I withdraw money from my account?
There are four ways to make account withdrawals:
- Log in to your account, select “Make a Withdrawal” and follow the instructions
- Contact your financial professional for assistance
- Fill out and mail a withdrawal request form
- Call 1-800-774-2108 to speak with a representative
You can choose to send withdrawals to yourself, the student or directly to a school.
I got a bill for college costs. When should I make a withdrawal?
Withdrawals should occur in the same calendar year qualified expenses are paid. For example, if you receive a bill in December but plan to pay it in January, wait until next year to take the withdrawal. Consult the IRS or a tax professional for more information.
What if my beneficiary doesn’t go straight to college after high school?
The Plan has no mandatory withdrawals at any age, so your account can continue growing for later use.
What happens if I take withdrawals for nonqualified purposes?
You would owe federal income taxes and an additional 10% federal penalty tax on investment earnings only. Contributions to your Plan account are not taxed when withdrawn, no matter what the purpose. State taxes may also apply.
Managing my account
When will I receive quarterly account statements?
Paper statements for the first, second and third quarters are mailed only if there was account activity during those periods. Fourth quarter statements covering the entire year are mailed in early January, regardless of account activity. Online statements are available 10 days after the end of each quarter. Log in to your account to view, download and save statements or to switch to paperless eDelivery.
Will I get a tax form showing my annual Plan contributions?
No, there are no federal or state tax forms for reporting 529 plan contributions. Log in to your account to view contribution totals for the year.
How can I make changes to my account?
Simply log in to your account to make changes and updates. Examples include:
- Start, change or delete automatic contributions from a bank account or paycheck
- View investments and make transactions
- Update address, phone numbers and other personal information
- Sign up for eDelivery of account documents
We also offer a wide variety of paper forms for managing and updating your account.
What if an account owner dies?
You can name a successor owner when first opening your account or anytime after. If something happens to you, your successor can take over the account and continue your education plans.
1 Earnings 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 and withdrawals used to pay elementary or secondary school tuition, 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.
2 Deductions may be subject to recapture in certain circumstances, such as rollovers to another state’s 529 plan and withdrawals used to pay elementary or secondary school tuition.
3 Tax- and penalty-free rollovers are subject to certain requirements and limitations. State tax treatment of Roth IRA rollovers may vary by 529 plan. Please consult your financial or tax professional for more information.
4 No additional gifts can be made to the same beneficiary over a five-year period. If the donor does not survive the five years, a portion of the gift is returned to the taxable estate.