Saving for your child’s education may feel overwhelming, but with the right tools, you can make steady progress toward a brighter financial future. For New York families, the New York 529 College Savings Program is one of the most popular ways to invest in higher education while also enjoying tax advantages.

A 529 plan is a tax-advantaged savings account designed to help families save for educational expenses. Contributions grow tax-deferred, and qualified withdrawals—such as tuition, fees, and even certain K-12 expenses—are tax-free.

1. State Tax Deductions

New York State taxpayers can deduct up to $5,000 annually (individual) or $10,000 (married filing jointly) in contributions from state income taxes.

2. Tax-Free Growth

Earnings grow tax-deferred, and withdrawals for qualified expenses are not subject to federal or state income taxes.

3. Flexible Investment Options

Choose from age-based portfolios (which automatically adjust risk as your child gets older) or individual portfolios tailored to your investment style.

4. High Contribution Limits

The lifetime contribution limit per beneficiary is over $500,000, giving families plenty of room to grow their accounts.

5. Open to Anyone

Parents, grandparents, relatives, or even family friends can open and contribute to a 529 account.

6. You can now convert up to $35,000 from a 529 plan to a Roth IRA for the same beneficiary—tax- and penalty-free—if specific conditions are met.

There is a lifetime limit up to $35,000. Rollover must be based on the annual Roth IRA contribution limit ($7,000 for 2025). The 529 plan must be open for at least 15 years and contributions in the last 5 years cannot be rolled over. The Roth IRA must be in the name of the 529 beneficiary.

In addition to the state 529 plan, New York City has introduced the NYC Kids RISE Save for College Program. Starting in Kindergarten, every NYC public school student automatically receives a scholarship account with a $100 initial deposit. Families, friends, and community members can continue to contribute, helping children build wealth from an early age. Check it out at https://nyckidsrise.org/

Funds must be used for qualified education expenses; non-qualified withdrawals are subject to taxes and penalties.

If you are not a New York resident, you can still invest in the NY 529 plan, but you may not be eligible for state tax deductions.

The Advisor-Guided 529 Plan offers professional guidance but typically comes with higher fees than the Direct Plan.

The NY 529 Savings Plan is a powerful tool to help families save for college while enjoying valuable tax benefits. Combined with the NYC Kids RISE program, parents in New York City have an even stronger foundation for preparing their children for future success.

If you’re considering opening a 529 plan, start today—the earlier you save, the more time your money has to grow.