College Savings Plans


College costs continue to escalate. Financial assistance can help defray the costs, but rarely will it cover all of them. The government can help pay for college with deductions and credits. Learn more here.




529 College Savings Plan

Federal Tax Savings

529 plans offer federal income tax breaks. Although taxpayer contributions are not deductible on the federal tax return, your investment grows tax-deferred, and distributions to pay for the beneficiary's college costs come out federally tax-free. The tax-free treatment was made 'permanent' with the Pension Protection Act of 2006.

State Tax Savings

Most states offer some tax breaks as well (like an upfront deduction for your contributions or income exemption on withdrawals) in addition to the federal treatment. You should research what benefits residents receive for investing in your own state's 529 plan. If you don't get any benefits from your state, you have the pick of a 529 plan in another Compare 529 Plans (from

Many states offer both an advisor plan (offered through financial advisors) and a direct plan (offered by the State).

Specific State Plans - New York, New Jersey, Connecticut