There are two 529 state plans in New York City - the 529 College Savings Plan NY and the Columbia New York Adviser 529 Plan. Both plans are similar in many respects, but there are important differences too that need to be taken into account. Here is an analysis of both the plans.

First, the similarities in the two plans:-

1. Both the College Saving Plan and the Adviser Plan have a maximum contributory limit of $235,000. This amount is partially deductible. For people who are filing for the amount on a singular basis, the maximum amount of tax deduction provided is $5,000, while for couples filing jointly, the maximum tax deduction is of $10,000.

2. Both the NYS 529 plans are open for residents as well as nonresidents.

3. Both the NYS 529 plans have an automatic investment plan.

4. Both the NYS 529 plans have no enrollment fees. There are no penalties for cancellation of the account, or for changing the name of the beneficiary or the account owner.

5. Qualified withdrawals can be made at any time on both the NYS 529 plans. But if the withdrawals made are nonqualified, then there will be a penalty of 10% over the total contributed amount.

Now let us look into the differences:-

1. The Columbia New York Adviser 529 Plan is not a direct savings plan like the College Savings Plan is. One cannot open an account directly; a broker is needed to open the account.

2. The minimum amount required to open the account is higher with the Columbia New York Adviser 529 Plan. While the College Savings Plan can be opened with an amount of $25, the Columbia Plan requires an amount of $1,000. Even the subsequent purchases are higher with Columbia. College Savings Plan requires a subsequent purchase amount of $25, while the Columbia Plan requires $50.

3. Both the plans offer an automatic investment plan. But the College Savings Plan allows the automatic investment to be opened with an amount of $25, with annual contributions of $25; while the Columbia New York Adviser 529 Plan requires an amount of $50 to open the investment and then requires monthly contributions of $50.

4. It is a bit costlier to maintain the Columbia Plan too. It requires an annual maintenance fee of $25 and a program management fee of $0.3. The College Savings Plan does not include these fees.