3 Fun Things We Do Regularly Because We Have a NY 529 Plan

 

Having kids means making preparations for so many things so that you can rest easy at night. Having a NY 529 plan for both of our children gives us peace of mind and the ability to have more fun day to day.

3 Fun Things We Do Regularly Because We Have a NY 529 Plan

To be completely upfront with you all, I have a lot of student loan debt, like most Millennials. There was kinda no way around it, so we’re all paying the price now and it’s just not fun. Because of that, from the very beginning, saving for our kids future was one of the most important things for Chris and I. We live our life on a budget so that we’re always able to make ends meet, put money into savings and have organic groceries on the table every day. These things are all super important to us. But even more so, it’s the not worrying and being able to sleep at night that really puts the stress at bay – because we have invested in a NY 529 Plan for both Branden and Blake.

My favorite things to do because the NY 529 Plan’s on my side

I know that it’s not always easy to have enough funds every month to cover big investments and still have wiggle room to live everyday life – believe me, I get this with every fiber of my being. But this is why we have loved the NY 529 Plan since the very beginning because we first started by putting very little aside, only what we could afford. Before you know it, that monthly contribution really starts to grow. And as Chris and I started making more money over the years, we bumped up our monthly contribution for both kids and always put half of their birthday and Christmas money in. It’s really calming as a parent to watch those funds grow. And because of that, we’re able to feel better about some of the fun activities we do and not look at certain things like an expensive dinner out or impromptu spa day as a splurge – because we know we’re in control of our kids future.

1. Get my nails done regularly.

It’s very rare that you won’t find me with my nails done. It’s just one of those things that makes me so happy, feel like I’m taking care of myself and is a little scoop of alone time that I get every other week or so that is just for me. It’s wonderful and something that I will never take for granted.

2. Impromptu meals out – just because!

As I’ve gotten older, I’ve been really into meal prepping and planning our menus for the week. But there is nothing like the feeling of not having to cook – just because you don’t feel like it! We always leave a little wiggle room in our budget for ordering in whenever the mood strikes, but probably 3 times a month, we have a nice family meal out. I’m talking drinks, appetizers, being waited on and lots of family bonding. It’s one of my favorite moments with my crew! Last week, we made a completely impromptu visit to DUMBO in Brooklyn and stopped in one of our favorite restaurants, Grimaldi’s, and ended the day with ice cream – just because we wanted to.

3. Shopping!!

I don’t spend as much on clothes for myself as I did before we had kids, but having these two mini fashion lovers gets me really excited for the start of a new season whenever we plan out their wardrobe. I mean, there is just something so fun about a box arriving at our door (hello online shopping addiction) and watching Blake squeal “shoeeesss!” I love being able to buy them things that they both want and need just because.

NY 529 Plan Rules and must know information

First, a NY 529 savings plan is a type of investment account you can use for higher-education savings. 529 plans are usually sponsored by states. They are so awesome and powerful because of tax savings, as your earnings grow federally tax-deferred, qualified withdrawals are tax-free,* and some states (like New York) have other tax benefits as well.** Anyone can open up a NY 529 plan, not just the parents – as long as they are a U.S. citizen or a resident alien. And anyone can contribute, too! Check out their Ugift program here. 

Using the NY 529 Plan

Money contributed to a 529 account can be used to pay for anything that’s considered a qualified higher-education expense, like tuition; books; supplies; equipment; expenses for the purchase of certain computer equipment, software, and computer-related services; and certain room and board fees. It doesn’t necessarily have to be used for college, but can be used for trade and vocational schools, 2 and 4 years colleges and postgraduate programs.

Investing in a NY 529 Plan

The great thing about a 529 account is that their contribution limits are generally high—from $200,000 to $300,000 or more, depending on the state. For the Direct Plan, you can contribute up to $375,000 on behalf of one beneficiary. This amount includes all New York-sponsored 529 savings accounts held for the same beneficiary. Keep in mind that 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. Lastly, up to $10,000 is deductible annually from New York State taxable income for married couples filing jointly; single taxpayers can deduct up to $5,000 annually. May be subject to recapture in certain circumstances such as rollovers to another state’s 529 plan or nonqualified withdrawals.

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I truly hope that this gave you a bit of an insight into how easy it really is to plan and save for your children’s future with a NY 529 plan.  If you’re searching for more information about the NY 529 plan rules, please check out their FAQ page here or call them directly – they are so friendly and helpful!

XOXO,

Allison

Compensation was provided by NY 529 Direct via Momtrends. The opinions expressed herein are those of the author and are not indicative of the opinions of NY 529 Direct or Momtrends.

Investments in the plan are subject to risk.

Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other benefits that are only available for investments in that state’s 529 plan.

The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering the Direct Plan. Ascensus Broker Dealer Services, Inc., serves as Program Manager and, in connection with its affiliates, provides recordkeeping and administrative support services and is responsible for day-to-day operations of the Direct Plan. The Vanguard Group, Inc., serves as the Investment Manager. Vanguard Marketing Corporation markets, distributes, and underwrites the Direct Plan.

No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation (FDIC), The Vanguard Group, Inc., Ascensus Broker Dealer Services, Inc., nor any of their applicable affiliates insures accounts or guarantees the principal deposited therein or any investment returns on any account or investment portfolio.

New York’s 529 College Savings Program currently includes two separate 529 plans. The Direct Plan is sold directly by the Program. You may also participate in the Advisor Plan, which is sold exclusively through financial advisors and has different investment options and higher fees and expenses as well as financial advisor compensation.

For more information about New York’s 529 College Savings Program Direct Plan, obtain a Disclosure Booklet and Tuition Savings Agreement at www.nysaves.org or by calling 1-877-NYSAVES. This includes investment objectives, risks, charges, expenses, and other information. You should read and consider them carefully before investing.