Frequently Asked Questions

Almost anyone! There are no age or income restrictions, and you don't have to be a resident of New York. You must be a U.S. citizen or resident alien with a verified permanent U.S. address (that isn't a post office box) and valid Social Security Number or Individual Taxpayer Identification Number.

Learn more about how to open an NY 529 account

The person you're opening the account for (the beneficiary) must be a U.S. citizen or resident alien with a valid Social Security Number or Individual Taxpayer Identification Number.

The beneficiary doesn't have to be related to you and doesn't have to live in New York. You can name yourself as beneficiary and use the money for your own education.

Yes. While there can be only one beneficiary named for each account, you can open separate accounts for different beneficiaries.

Because the beneficiary must have a Social Security Number or Individual Taxpayer Identification Number, you cannot open an account for an unborn child. However, you can open an account naming yourself as the beneficiary and then change the beneficiary to the child when he or she is born and has their social security number.

We are required by federal law to obtain certain personal information about the account owner and the beneficiary that we can use to verify your identities. If you don't provide the requested information, we won't be able to open your account.

If we're unable to verify your identities, we may need to close your account or take other steps we deem reasonable. The Social Security Numbers or Individual Taxpayer Identification Numbers of you and your beneficiary are also required for tax reporting purposes.

Yes. For example, a father, mother, grandparent, and uncle can each open a separate account for the same beneficiary and can also open separate accounts for other beneficiaries.

Yes. You can have multiple accounts in multiple states for the same or different beneficiary. You can also contribute to accounts owned by other individuals. In some states, tax benefits are only available to account owners so please check with a tax advisor before contributing to an account owned by another individual.

You can keep your NY 529 account and continue to make contributions no matter where you live in the United States.

However, if you're no longer a New York State taxpayer, you won't be eligible to deduct your contributions for New York State income tax purposes.

Yes. You can contribute to an NY 529 account with proceeds from the sale of assets held in a Coverdell Education Savings Account (ESA) or the redemption of a qualified U.S. savings bond (Series EE or I). You'll need to provide the following documentation:

• For an ESA. An account statement or other documentation issued by the financial institution that acted as custodian of the ESA. The statement must show the total amount contributed to the account and the earnings in the account.
• For a U.S. savings bond. An account statement, Form 1099-INT, or other documentation from the financial institution that redeemed the bond. The statement must show the interest paid when the bond was redeemed.

Until we receive this documentation, the entire amount of your contribution will be treated as earnings. If the entire contribution is treated as earnings, there may be adverse tax consequences if you take a nonqualified withdrawal. Please check with your legal or tax advisor about your particular situation.

Note: If you have questions about opening an NY 529 account with funds from an UGMA/UTMA account, click here to learn more about UGMA/UTMA accounts.

If you don't provide us with a breakdown of the principal and earnings, federal regulations require that your rollover be treated as 100% earnings. This means that you may have to pay taxes on the full amount of your rollover if you take a nonqualified withdrawal from your NY 529 account. For direct rollovers, the sending 529 plan is required to provide us with the breakdown of principal and earnings generally within 30 days of the money being moved from that plan to your NY 529 account.

Refer to the Disclosure Booklet and Tuition Savings Agreement

No. Returns are never guaranteed, and your account value will fluctuate with market performance. As with any investment in securities, you can lose money by investing in the Direct Plan.

Before you select an investment option, you should carefully consider your investment time horizon and risk tolerance. Also keep in mind that the holding period for college investors is short (generally 5 to 20 years), so you should consider investing more conservatively as the time approaches for you to begin making withdrawals.

You can change the investments for your future contributions at any time. Under the federal laws that govern 529 plans, you're able to move money you've already contributed to a different portfolio within your account twice per calendar year or if you change the beneficiary.

The investment options we offer have been selected specifically for the Direct Plan and are the only investment options available.

The returns displayed on this site reflect past performance, are net of the management fee, and are not a guarantee of future performance.

Keep in mind that you don't actually own shares in the underlying funds. Instead, you own portfolio units in the Direct Plan, which means the returns you receive for a particular portfolio may vary from the returns of the underlying funds. Your returns take into account fees we charge to manage the Direct Plan.

Find out about portfolio performance

The plan charges a total annual asset-based management fee of 0.11 % of account assets. That means for every $1,000 you invest, you'll pay $1.10 in fees per year. There are no advisor fees, sales commissions or annual account fees, like those you may find in other plans.

You can also roll over 529 plan assets into ABLE plan accounts, subject to eligibility and the annual ABLE plan contribution limit. Rollovers of 529 plan assets into NY ABLE plan accounts are not considered taxable events for purposes of federal or New York State taxes. For more details about the Direct Plan's tax benefits, refer to the Disclosure Booklet and Tuition Savings Agreement.

The money in your account may be used at any eligible higher education institution in the United States and abroad that qualifies under federal guidelines as well as for certain apprenticeship program expenses and credentialing expenses. This includes most public and private colleges and universities, graduate and postgraduate schools, community colleges, certain trade and vocational schools, and certain registered and certified apprenticeship programs.

Please note that the New York State Department of Taxation and Finance has not yet determined whether a distribution to pay for credentialing expenses would be considered a qualified or nonqualified withdrawal for New York State tax purposes. Please consult a qualified tax advisor about your personal situation.

If a school's been assigned a federal school code by the U.S. Department of Education, then it's an eligible institution under Section 529 of the Internal Revenue Code.

Search the federal school codes

Federal law allows 529 plan account owners to withdraw assets to pay for a variety of expenses including expenses in connection with enrollment or attendance at an elementary or secondary public, private, or religious school (K-12 expenses) up to $10,000 per year per beneficiary (increasing to $20,000 per year January 1, 2026) with no resulting federal taxes on account earnings or penalties.

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.

A recognized credential program includes any program to obtain a recognized credential if it meets any of the following requirements

• The program is on a state list prepared under the Workforce Innovation and Opportunity Act (WIOA). Each state provides its own list of programs designed to comply with WIOA. For example, you can find a list of eligible training providers for New York at https://apps.labor.ny.gov/ETPL_V2/home.xhtml.
• The program is listed in the public directory of the Web Enabled Approval Management System (WEAMS) of the Veterans Benefits Administration. You can find more information about these programs at https://inquiry.vba.va.gov/weamspub/buildSearchInstitutionCriteria.do.
• An exam that is required to obtain or maintain a credential. The exam must be developed or administered by an organization widely recognized as providing reputable credentials in the occupation the exam relates to. The organization must also recognize the program as providing training or education that prepares the individual to take the exam.
• Certain programs identified by the U.S. Secretary of the Treasury after consultation with the U.S. Secretary of Labor.

A recognized credential is

• A credential that is industry-recognized and is any of the following
  • Any postsecondary employment credential issued by a program that is accredited by the Institute for Credentialing Excellence, the National Commission on Certifying Agencies, or the American National Standards Institute, or
  • Any postsecondary employment credential that is included in the Credentialing Opportunities On-Line (COOL) directory of credentialing programs maintained by the Department of Defense or by any branch of the Armed Forces or
  • Any postsecondary employment credential identified by the Secretary of the Treasury, after consultation with the Secretary of Labor, as being industry recognized.
• Any certificate of completion of certain apprenticeship programs.
• Any occupational or professional license issued or recognized by a state or the federal government and any certification that satisfies a condition for obtaining the license.
• Any recognized postsecondary credential as defined in the Workforce Innovation and Opportunity Act (WIOA) provided through a WIOA Recognized Postsecondary Credential Program (WIOA defines a recognized postsecondary credential as “a credential consisting of an industry-recognized certificate or certification, a certificate of completion of an apprenticeship, a license recognized by the state involved or federal government, or an associate or baccalaureate degree”).

You can contribute by:

• Electronic bank transfer (one-time contributions in varying amounts from your checking or savings account).
• Recurring contributions (also known as an automatic investment plan or AIP), which are set amounts moved from your checking or savings account on a regular basis.
• Payroll deduction (through participating employers only).
• Check (made payable to "New York's 529 College Savings Program Direct Plan").
• Rollover from another 529 plan.
• Transfer from an education savings account or a Series EE or I U.S. savings bond.
• Transfer from a Uniform Gifts/Transfers to Minors Act (UGMA/UTMA) account.

Please note that we don't accept contributions made in cash or by credit card, third-party personal checks over $10,000, foreign checks not in U.S. dollars, checks dated more than 180 days prior to receipt, or postdated checks. We also don't accept non-cash assets, such as mutual fund shares or other securities.

Sign up for Ugift—Give College Savings* and link your Ugift account to your Direct Plan account. You can then invite friends and family to contribute to your account by sharing a special Ugift code on X or by email. Gift-givers can use that code to make online contributions to Ugift, which will be transferred on a regular basis to your Direct Plan account. Ugift also provides printable gift coupons that you can distribute in person or by mail. The coupons are coded so that when they're mailed in with contribution checks that money will be deposited into the correct Direct Plan account.

*Ugift is a registered service mark of Ascensus Broker Dealer Services, Inc.

If your check and instructions are received in good order on a business day when the New York Stock Exchange (NYSE) is open, and prior to its close (generally 4 p.m. Eastern time, Monday through Friday), your contribution will be processed with that day’s trade date. If your check is received after the close of the NYSE, it will be processed using a trade date of the following business day.

Note: All checks should be made payable to "New York's 529 College Savings Program Direct Plan."

If your bank transfer is received in good order on a business day when the New York Stock Exchange (NYSE) is open, and prior to its close (generally 4 p.m. Eastern time, Monday through Friday), you'll receive that day's trade date. Your purchase will be made at that day's closing price for units of the applicable portfolio. Your bank account will be debited on the business day following the trade date.

If your bank transfer is received in good order after the close of the NYSE, you'll receive a trade date of the next business day. Your bank account will be debited on the business day following the trade date (i.e., the second business day after your request date).

Your bank account will be debited on the day you designate, provided that day is a regular business day. If the day falls on a weekend or a holiday, the debit will occur on the next business day. Your Direct Plan account will be credited on the business day preceding the day the bank debit occurs.

The first recurring contribution debit must be at least three days from the date your request is received. Quarterly recurring contributions will be made every three months on the date you indicate, not by calendar quarter.

If you don't indicate a date, the recurring contributions will be made on the 20th of the month.

You can use a personal checking or savings account held with a U.S. financial institution that is a member of the Automated Clearing House (ACH) network.

You can't use a passbook savings account for recurring contributions or an electronic transfer option. Generally, money market accounts aren't eligible.

Yes. If your beneficiary receives a refund from an eligible educational institution for money paid for qualified higher education expenses, you may recontribute the refund to a 529 account for which he or she is a beneficiary. The money must be recontributed within 60 days after the date of the refund and can't exceed the refunded amount.

You may make withdrawals at any time, taking into consideration the following guidelines:

• Contributions you make by check, recurring contributions, or electronic bank transfer will be available for withdrawal after seven business days.
• If you request a withdrawal by check at the same time you change your mailing address, the withdrawal will be held for nine business days.
• If you add or change bank information, you need to allow 15 days for withdrawals by electronic transfer.

Withdrawals can be requested online by logging onto your account, by phone, or by submitting a Withdrawal Request Form.

Qualified higher education withdrawals for attendance at eligible educational institutions can be sent to:

• The account owner.
• The beneficiary.
• The eligible educational institution.

We will only send withdrawals for K-12 tuition to the account owner.

All other withdrawals (i.e. nonqualified withdrawals) can be sent to:

• The account owner.
• The beneficiary.

Learn more about making withdrawals

We'll generate a Form 1099-Q in January of the calendar year following a year in which there was a withdrawal from your account. The recipient of the 1099-Q will be either the account owner or the beneficiary, depending on who received the proceeds of the withdrawal.

Withdrawals sent to the account owner will be reported under the account owner's Social Security number. Withdrawals sent to the beneficiary or to an educational institution will be reported under the beneficiary's Social Security number, per IRS guidelines.

You can change the beneficiary on your account at any time, provided that the new beneficiary is a member of the family of the original beneficiary. A member of the family is a:

• Brother, sister, stepbrother, or stepsister.
• Son, daughter, stepson or stepdaughter (or descendant of either).
• Father or mother (or an ancestor of either).
• Stepfather or stepmother.
• Son or daughter of a brother or sister.
• Brother or sister of the father or mother.
• Son-in-law, daughter-in-law, brother-in-law, sister-in-law, father-in-law, or mother-in-law.
• Spouse, or the spouse of any individual previously listed.
• First cousin.

Money you contribute to a 529 account is generally treated as a completed gift to your beneficiary, but as the account owner, you'll still have control over it.

If your contributions, together with any other gifts to your beneficiary, do not exceed $19,000 per year ($38,000 for married couples making a proper election), no gift tax will be imposed for that year. Gifts of up to $95,000 can be made in a single year ($190,000 for married couples making a proper election) for a beneficiary, and you may elect to apply the contribution against the annual exclusion equally over a five-year period.

Learn about the Direct Plan's tax benefits

For more information, consult your tax advisor or estate planning attorney.

The custodian acts as the account owner. When the custodianship terminates, the beneficiary is legally entitled to take control of the account and may become the account owner.

No. A custodian account owner can't select a new beneficiary (directly or by means of a rollover), except as permitted under UGMA/UTMA guidelines.

You may make additional contributions of money not previously gifted to the beneficiary under the UGMA/UTMA account to a separate, noncustodial account. This will allow you to retain control of the separate account after the custodianship terminates.