New York's College Savings Program
Saving for a college education can be an intimidating and often frustrating experience. New York's College Savings Program is designed to help families of all income levels save for this important goal.
Through payroll deduction, Cornell employees can enroll for as little as $15 per pay period. These deductions are made on an after-tax basis.
The Program offers New Yorkers an annual New York State income tax deduction for contributions of up to $5,000 for individuals and up to $10,000 for married couples filing jointly. When the money is used to pay for your beneficiary's qualified higher education expenses, you will also not have to pay federal or New York income taxes on earnings. Qualified withdrawals are completely income tax free.
Listed below are some of the most frequently asked questions regarding this educational plan. After reviewing this information, should you wish to enroll, please visit www.nysaves.org or call (877) NYSAVES.
Who can open a College Savings Program account?
Anyone - parents, grandparents, uncles, aunts, friends - can establish an account,
regardless of state residence.
How do I get started with payroll deductions?
After submitting a completed application to the Program, you will receive
a confirmation form attesting your enrollment. You will need to provide Payroll
with this form and complete a Cornell Authorization Form. Authorization Forms
can be requested from Benefit Services at 255-3936 or benefits@cornell.edu
or by calling Payroll at 255-5194.
How much can I contribute to the Program?
Through payroll deduction, an account may be opened for as little at $15 per
pay period.
Are the funds limited for use at New York State colleges?
Funds can be used at eligible schools anywhere.
What can the money in the account be used for?
Funds may be used for educational expenses, including tuition, fees, supplies,
books, and equipment required for enrollment. Most room and board expenses
are also covered for students enrolled at least half time.
If I have more than one child, should I open an account for each one?
Yes, each account can only have one designated beneficiary.
Do I have to be related to the designated beneficiary?
No. You may designate anyone, including yourself. The tax benefits are
not contingent on the beneficiary being a family member of the account
owner.
What if I move out of New York State?
You may keep contributing money to the account and continue to enjoy the
benefits of federal and New York State tax-deferred growth.