New York Makes It Easier to Contribute to 529 Savings Plans

June 17, 2008 Posted by admin in 529 Plan Updates

The state of New York is making it easier to contribute to 529 savings plans. In the past, only the account holder of the 529 could contribute funds to a plan. (That’s typically a parent). Now other people, including relatives, employers, and friends, can contribute to the same 529 plan.

This is a great move. Only allowing parents to contribute was overly restrictive. But now New York has friendlier laws than a lot of states. I especially like how employers can contribute to a 529 college savings plan. Perhaps they could match their employees contributions like they do with 401(k)s?

Here’s more information about New York 529 plans.

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