529 College Savings Plan - J.P. Morgan Asset Management

529 College Savings Plan

Savings alone won’t pay for college

Which is why our guide is essential. Use the newly updated College Planning Essentials toolkit to help guide discussions, inform investment decisions and get clients on course to college.


Key Features of the Advisor-Guided Plan

Sponsored by the State of New York, the Advisor-Guided Plan provides a tax-advantaged way for families to save for the future costs of higher education.
Substantial tax benefits
  • Tax-deferred growth of investment earnings and tax-free withdrawals for qualified expenses1
  • Income tax deduction for contributions by an account owner to their Advisor-Guided Plan account for New York state taxpayers2
  • Special estate planning and gifting benefits
Diversified range of investment options
  • Age-based option (nine portfolios), six asset allocation portfolios and 16 individual portfolios
  • Portfolios provide access to actively managed strategies by J.P. Morgan and its Multi-Asset Solutions as well as ETF strategies by State Street Global Advisors Funds Management
Flexibility and control
  • Use funds at any eligible public or private institution in the U.S. and overseas. Click here   for more information about qualifying schools.
  • Apply toward tuition, fees, certain room and board expenses, books and other qualified higher education expenses
  • Change beneficiaries or transfer a portion of your account to another family member if your current beneficiary doesn't need the funds for college3
  • Control how the account assets are invested and distributed, even after a beneficiary reaches the age of majority4
Low minimums and high maximums
  • Low initial contribution minimum of $1,000 per account5
  • High contribution limit of $520,000 per beneficiary

Getting started

New York’s 529 Advisor-Guided College Savings Program is sold exclusively through financial advisors. Contact your financial advisor to learn more about how the Plan may help you achieve college savings needs. Your financial advisor can help you identify your goals, open an account, select the appropriate investment options and discuss ways to maximize the Plan’s benefits.
1 Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. Federal law allows distributions for K-12 Tuition Expenses of up to $10,000 per beneficiary per year. Under New York State law, distributions for K-12 Tuition Expenses will be considered non-qualified withdrawals and will require the recapture of any New York State tax benefits that have accrued on contributions.

2 Account owners can deduct up to $5,000 ($10,000 if married filing jointly) in contributions from New York state income taxes each year. Deductions may be subject to recapture in certain circumstances, such as rollovers to another state’s plan or New York non-qualified withdrawals.

3 Section 529 defines a family member as a son, daughter, stepson or stepdaughter, or a descendant of any such person; a brother, sister, stepbrother or stepsister; a father or mother, or an ancestor of either; a stepfather or stepmother; a son or daughter of a brother or sister; a brother or sister of the father or mother; a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; the spouse of the beneficiary or the spouse of any individual described above; or a first cousin of the beneficiary. Gift or generation-skipping transfer taxes may apply.

4 Limitations may apply. Please review the Advisor-Guided Plan Disclosure Booklet for details.

5 Generally no minimum for Advisor class units.

Before you invest, consider whether your or the Beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program.

The Comptroller of the State of New York and the New York State Higher Education Services Corporation are the Program Administrators and are responsible for implementing and administering New York’s 529 Advisor-Guided College Savings Program (the “Advisor-Guided Plan”). Ascensus Broker Dealer Services, LLC (“ABD”) serves as Program Manager for the Advisor-Guided Plan. ABD and its affiliates have overall responsibility for the day-to-day operations of the Advisor-Guided Plan, including recordkeeping and administrative services. J.P. Morgan Investment Management Inc. serves as the Investment Manager. JPMorgan Distribution Services, Inc. markets and distributes the Advisor-Guided Plan. JPMorgan Distribution Services, Inc. is a member of FINRA.

No guarantee: None of the State of New York, its agencies, the Federal Deposit Insurance Corporation, J.P. Morgan Investment Management Inc., Ascensus Broker Dealer Services, LLC, JPMorgan Distribution Services, Inc., nor any of their 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. The Advisor-Guided Plan is sold exclusively through financial advisory firms who have entered into Advisor-Guided Plan selling agreements with JPMorgan Distribution Services, Inc. You may also participate in the Direct Plan, which is sold directly by the Program and offers lower fees. However, the investment options available under the Advisor-Guided Plan are not available under the Direct Plan. The fees and expenses of the Advisor-Guided Plan include compensation to the financial advisory firm. Be sure to understand the options available before making an investment decision.

For more information about New York’s 529 Advisor-Guided College Savings Program, you may contact your financial advisor or obtain an Advisor-Guided Plan Disclosure Booklet and Tuition Savings Agreement at www.ny529advisor.com or by calling 1-800-774-2108. This document includes investment objectives, risks, charges, expenses, and other information. You should read and consider it carefully before investing.

The Program Administrators, the Program Manager and JPMorgan Distribution Services, Inc., and their respective affiliates do not provide legal or tax advice. This information is provided for general educational purposes only. This is not to be considered legal or tax advice. Investors should consult with their legal or tax advisors for personalized assistance, including information regarding any specific state law requirements.

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