ALBANY — New York is improving its savings program for college.
On Friday, the state's 529 College Savings Program reduced fees, offered more investment options, raised the maximum savings balance allowed and got rid of the minimum contribution required for some of the plans offered.
“Now’s the time to take advantage of the improvements we’re making to New York’s 529 College Savings Program. We’re making it easier for New Yorkers of all income levels to invest in their loved one’s future, as the cost of obtaining a college education continues to rise," state Comptroller Thomas DiNapoli, who oversees the program, said in a statement.
The 529 savings program is a state-run investment plan designed to help save for a child's educational future.
An account can be opened by any adult in a child's life, and the savings can be withdrawn tax free to help to offset tuition costs, room and board or the purchase books and supplies.
The new changes include six new investment portfolio options for age-based savings.
There will also no longer be a $25 minimum contribution required to open a savings plan, a move aimed at encouraging people of any economic background to consider opening an account.
The program is also lowering its fees.
The total annual asset-based fee will be dropping from 0.16 percent to 0.15 percent. So for every $1,000 invested, the fee will be $1.50 a year. Over the past 15 years, fees have been reduced 80 percent, DiNapoli said.
Additionally, the maximum account balance allowed increased from $375,000 to $520,000.
For more information on New York's 529 plan, visit nysaves.org or call 877-NYSAVES (877-697-2837).