Out-of-state savers

No matter what state you live in, you can benefit from saving for college with New York’s 529 Direct Plan.


Choosing the Direct Plan means you can:


Use your savings at any eligible school

Your child doesn't have to attend a school in New York. The money in your account can be used to pay qualified higher education expenses at any eligible school—college, university, vocational, trade, or graduate—anywhere in the United States or abroad. You can now also use the money in your account to pay expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school, of up to $10,000 per year per beneficiary. And, you can use the money in your account to pay expenses for fees, books, supplies, and equipment required for the participation of a beneficiary in an apprenticeship program registered and certified with the Secretary of Labor, and principal or interest on qualified education loans of the beneficiary or a sibling of the beneficiary up to a $10,000 lifetime limit per individual.*

Qualify for a New York State tax deduction

If you work in New York and pay New York State income taxes, you may be entitled to a state tax deduction of up to $5,000 ($10,000 if you're married filing jointly) on contributions to your Direct Plan account.*

Pay no extra fees

The Direct Plan doesn't charge additional fees for non-New York residents—and it has some of the lowest costs of any 529 plan. You pay only $1.20 in fees per year for every $1,000 that you invest (0.12% total annual asset-based fee).

Note: Before you invest in New York's 529 Direct Plan, consider whether your or the beneficiary's (future student's) home state offers any state tax or other benefits that are only available for investments in that state's 529 plan. Other state benefits may include financial aid, scholarship funds, and protection from creditors.