Now Is Always The Time To Save For College and families just recently got an incentive to contribute to education savings through New York’s 529 College Savings Plan. Thomas DiNapoli is the state’s comptroller and he states that fees are going to be reduced by 50%. The old fee structure to manage the 529 fund was set at .49% but starting this month the fee will now be set at .25%.
“Family budgets are getting tighter, but families still need to save for college,” DiNapoli said in a statement. “When you’re saving for college, every dime counts.”
Based upon this change in fees, it is estimated that plan participants will have a combined savings of almost $20 million dollars annually. 529 program fees can range from .20 percent to upwards of 2.27 percent. At .25%, the New York 529 Savings Plan can now boast a reputation of being one of the lowest fee based college savings plan in the nation. New York’s 529 College Savings Plan is the largest of it’s type in the nation with over $8 Billion dollars invested in about 500,000 separate fund accounts.
New York’s 529 college savings plan is open to any U.S. Citizen (or resident alien) that has a valid social security number. The funds can be used at any accredited college, university, or vocational school in the country (it is not just limited to schools in the state of New York). The minimum contribution required to open an account is only $25.
If you have been thinking about starting a college savings account, you should probably take a look at the option provided by the state of New York. You can view additional information about their 529 program here on the web or you can drop them a call at 877-697-2837 or email: NY529@nysaves.org