New York’s 529 College Savings Program
According to the Direct Plan Program Brochure and Privacy Policy and Tuition Savings Agreement (November 2008):
New York's 529 College Savings Program Direct Plan provides a flexible, convenient, and low-cost way to save for college. The Program features a wide range of investment choices, tax-free withdrawals when used for qualified higher-education expenses*, and contributions that are tax-deductible (up to certain limits**) for New York State residents.
You can save for a child, grandchild, friend -- or even yourself. The Program includes a valuable opportunity to accelerate your college savings through Upromise rewards -- a free service that returns a percentage of your spending at hundreds of America's leading companies and can transfer that money directly to your Program account.
*Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Tax and other benefits are contingent on meeting other requirements and certain withdrawals are subject to federal, state, and local taxes.
**Up to $10,000 is deductible from New York State taxable income for married couples filing jointly; single residents can deduct up to $5,000 annually. May be subject to recapture in certain circumstances - rollovers to another state's plan or non-qualified withdrawals.
New York’s 529 College Savings Program at www.nysaves.org will provide enrollment instructions, withdrawal information, forms and FAQs.
HOW TO ENROLL IN NY 529 SAVINGS PROGRAM
The Enrollment process takes about 10 minutes and can be completed at www.nysaves.org. There are two ways to enroll either online or by downloading a blank Enrollment Application. You may also request an Enrollment Kit by mail.
Step 1 – GETTING STARTED
You will need to have the following information available:
- Your Social Security number
- The Social Security number of the student beneficiary
- The date of birth of the student beneficiary
- Check (which displays your bank account and routing numbers) if you are funding your account via electronic transfer or if you want to set up electronic bank transfers between your account in New York’s 529 College Savings Direct Plan and your bank account
Step 2 – CONSENT TO ELECTRONIC DELIVERY OF INITIAL DISCLOSURE DOCUMENTS
Step 3 – CHOOSE YOUR DELIVERY METHOD
Select the manner in which you would like your quarterly statements, transactions
and profile confirmation to be sent
Step 4 - ACCOUNT TYPE
Choose either an Individual 529 Account or an UGMA/UTMA 529 Account
Step 5 – ACCOUNT OWNER INFORMATION
Enter all required information and select a user name and password
Step 6 – STUDENT BENEFICIARY INFORMATION
Step 7 – INVESTMENT SECTION
Step 8 – FUNDING YOUR ACCOUNT
These are the four available options:
- Electronic Bank Transfer
- Payroll Deductions
- Check or Money Order (check contributions will not be available for withdrawal for 10 calendar days)
- Rollover Funds from Existing College Savings Plans
Step 9 – FUNDING YOUR ACCOUNT – PERIODIC PAYMENTS
Step 10 – VERIFY AND SUBMIT – ELECTRONIC SIGNATURE REQUIRED
HOW TO WITHDRAW FUNDS FROM NY 529 SAVINGS PLAN
You may request a withdrawal of funds through www.nysaves.org under "NEED TO MAKE A WITHDRAWAL?". You will need the Stony Brook University school code – 002838 and the campus code – 00.
There are two easy ways to request a withdrawal:
- LOG ON, click on the account number, select "ASSET MANAGEMENT", then "MAKE A WITHDRAWAL". You will need to specify how much to withdraw and who should receive the funds (this is the fastest and easiest way to withdraw funds).
- Download the WITHDRAWAL REQUEST FORM, print, complete and mail. To avoid delays in withdrawals, please complete all the required information on the form.
Funds can be sent to you, to the student beneficiary of your account or an eligible college or university.
As New York's 529 College Savings Program is not administered by SUNY or Stony Brook University, any questions regarding the program or enrollment process should be directed to the NY Saves administration at 1-877-NYSAVES (1-877-697-2837).