Saving for College as Part of Your Estate Plan
Each state offers its own program and most programs are available to residents of any state. So a resident of Illinois can invest in the New York 529 program.
Even a Small Monthly Deposit Can make a Difference
New York’s 529 plan is considered a traditional plan which can be purchased directly from the state. It is currently run by the Vanguard Group. You can start with an investment as low as $25.00 and if you sign up for monthly automatic contributions, you can deposit as little as $15 a month into the account.
New York residents who invest in the New York 529 College Savings Plan can deduct up to $5,000 on their state income taxes for single filers and $10,000 for married filers. Federal income tax benefits include not paying income tax on the earnings. The New York’s 529 College Savings Program also offers an option to be a part of a reward program set up by Upromise®. A percentage of purchases made with the Upromise card are converted into reward points which are then converted into account contributions.
Getting Legal Help
Experienced estate planning attorney Elga Goodman can help you understand all your options for asset preservation and making the most of your estate assets to plan for the future. Call us today at 973-841-5111 to learn more.
Posted in: New York Estate Planning