Smart Start Guide to Financial Gift Giving That Really Counts (2024)

Future Planning

What’s the big deal about financial gift giving? Selecting just the right gift for anyone cansometimes be as much of a rollercoaster ride as receiving gifts. More than sliding bills into acard or grabbing a random retailer gift card for loved ones, financial gifts as an investment helpto save money for the future. When it comes to saving money, the best part is you can startsaving at any time. We started NY’s 529 College Savings Program Direct Plan account for myson during high school to fast track college savings, there's a little more time to save for mysecond grader's education. Anytime is the right time to save for a financial future, whether youhave a toddler or a teen, it's never too early or too late to save for higher education. Plus, theyhave an easy gifting portal called UGift that allows you to give friends and family members aunique code to add to your 529 account.

Financial Flexibility

How helpful is it to know that your financial gift is going toward a better future? Contributing agift to a NY 529 College Savings Program Direct Plan account helps put money aside today, fortomorrow’s higher education expenses. With the future being uncertain, there’s always the
flexibility for you to change your beneficiary if needed- if the child doesn't use the money in theaccount, you can choose an eligible family member, such as another child, or even yourself, tobe the beneficiary without paying a penalty.


Higher Education Planning

Thankfully, my son is staying steady on his college planning track, however, what if he changeshis goals after high school graduation? With the gift of a NY 529 College Savings Program DirectPlan contribution, there’s the option to choose from any eligible school, kids can attend anyeligible higher-education institution, not just a 4-year college or university. This includesvocational and trade schools, as well as community colleges, and graduate schools.

Tax Advantages

Here’s a bonus gift for you! Did you know that you can save on your taxes and lower the cost ofcollege? With NY’s 529 College Savings Program Direct Plan, you benefit from tax-deferredearnings as well as tax-free withdrawals for qualified higher education expenses. Since you'repaying less in taxes, you can save more, which lowers the total cost of college. If you're a NewYork State taxpayer, you may be able to deduct contributions on your stateincome tax return. Checkout NYsaves.org for the specific details and be sure to check with your tax advisor for anytax advice. With this smart start guide to financial gift giving, you see why the NY’s 529 CollegeSavings Program Direct Plan really counts! For more information check out NYsaves.org.

This siteabides by word of mouth marketing standards. I believe in the honesty of relationship, opinion,and identity. The views and opinions expressed on this blog are purely my own. Any productclaim, statistic, quote, or other representation about a product or service should be verified withthe manufacturer, provider or party in question.

*Disclosures:

Up to $10,000 is deductible annually from New York State taxable income for married couplesfiling jointly; single taxpayers can deduct up to $5,000 annually. State tax benefits for non-resident New York taxpayers may vary. State tax deductions may be subject to recapture incertain circ*mstances such as rollovers to another state's 529 plan, nonqualified withdrawals,or withdrawals used to pay expenses for tuition in connection with enrollment or attendance atan elementary or secondary public, private, or religious school. Please consult your tax advisor.

Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federalpenalty tax, as well as state and local income taxes. Tax and other benefits are contingent onmeeting other requirements and certain withdrawals are subject to federal, state, and localtaxes.

Investment returns are not guaranteed, and you could lose money by investing in New York’s529 College Savings Program Direct Plan.

For more information about New York's 529 College Savings Program Direct Plan, download aDisclosure Booklet and Tuition Savings Agreement at www.nysaves.org or request one bycalling 877-NYSAVES (877-697-2837). This document includes investment objectives, risks,charges, expenses, and other information. You should read and consider them carefullybefore investing.

Before you invest, consider whether your or the beneficiary's home state offers any state taxor 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.

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

No guarantee: None of the State of New York, its agencies, the Federal Deposit InsuranceCorporation (FDIC), The Vanguard Group, Inc., Ascensus Broker Dealer Services, LLC, nor any oftheir 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. TheDirect 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 optionsand higher fees and expenses as well as financial advisor compensation.