Make 529 plan contributions before the year end!
by Gregory Schaffer on Dec 7, 2018
If you have not opened a New York 529 College Savings Plan, consider doing this prior to December 31st
Flexible use of savings
- Save for a child, grandchild, friend—or even yourself.
- Use at any eligible 2- or 4-year college or university, vocational or technical school, or graduate school in the United States or abroad.
- Pay for tuition, certain room-and-board expenses, books, supplies, and the expenses for the purchase of certain computer equipment, software, and computer-related services.
- Grow your earnings tax-deferred.
- Pay no federal taxes on qualified withdrawals.
- Contribute up to $75,000 in a single year ($150,000 if married filing jointly) for each beneficiary, without incurring federal gift taxes as long as you don't make any other gifts to that same beneficiary for five years.
More tax benefits for New York taxpayers
- Pay no state taxes on qualified withdrawals.
- Deduct up to $5,000 ($10,000 if married filing jointly) in contributions to the Direct Plan on your state income tax return each year.
We can assist you in setting up your plan and choosing appropriate investment options at Schaffer & Company Asset Management, Inc, please give us a call today!