From Cynthia Scott of OMC Financial Services:
**A 529 plan is a state sponsored plan which allows individuals to save for higher education; the investments are managed by a management company
**Vanguard manages NY State’s 529 plans
**No income limits and no state residency requirements
**Any one can set up or contribute to the plan i.e., parents, relatives, friends
**Taxes are deferred during the accumulation period and withdrawals are income tax exempt if all rules are met
**Child has no control
**An account can be transferred to another family member if the child decides not go to college
**Contributions to the NY State 529 plan are tax deductible up to $10,000 for a married couple filing jointly; $5,000 for an individual. There is no deduction on the federal level. Only the account owner can take the income tax deduction.
If you are interested in the NY State 529 plan visit www.nysaves.org
