Any RF employee enrolled in payroll direct deposit can open a tuition savings account for a specified beneficiary such as their child, grandchild, other relative or friend - or even yourself.
Contributions to the account are invested according to the investment options selected by you, the employee (account owner). The account owner can withdraw money without penalty to pay for the qualified higher education expenses of the beneficiary.
The first $5,000 which is invested each year for a future college student will be deductible from New YorkState gross income when the employee files his or her state income tax return.
A married couple filing a joint return may deduct up to $10,000 per year. Investment earnings will not be taxed by the state government as long as the money withdrawn is used for qualified higher education expenses.
Withdrawals used by the beneficiary for qualified higher education expenses are not subject to federal or New YorkState income taxes.
Enroll in your Campus Direct Deposit Program (check with your campus benefits office to determine if you are qualified for this program).
Complete a College Savings Program “Enrollment Form and Tuition Savings Agreement.”
Complete a College Savings Program “Authorization for Automatic Payroll Deduction.”
Submit signed and completed forms to your campus payroll office.