College Savings Plans

529 Savings Plan

A 529 savings plan, also known as a higher education savings plan, is a type of investment account that can be used for education savings. These accounts can be opened by almost anyone, there are no income limits and anyone can contribute.

By starting early and making regular contributions, you can establish a strong foundation for your educational investment. These plans are designed to offer potential tax advantages and flexible savings options that cater to your individual needs.

529 plans allow you to use your savings at in-state, out-of-state, public or private schools. This includes community colleges, trade schools, graduate programs and some international schools. You can even use a 529 plan to save for K-12 tuition, registered apprenticeship programs and certain student loan repayment.

On this page, we will provide information on saving for education in Virginia through 529 plans. We’ll discuss the benefits, features and important considerations to help you make well-informed decisions when it comes to saving for college. Beyond the information provided here, it’s important to conduct further research and consider your individual circumstances when selecting a college savings plan. These Virginia 529 plan tutorials can help.

Higher education savings plans, such as Virginia’s Invest529 program, are designed to help you save for future college expenses with key advantages:

• Ease of Getting Started: Invest529 offers the convenience of starting with as little as $10, making it accessible to all individuals who want to begin saving for college.
• Tax Benefits: Your savings can grow without being taxed by the federal government if you plan to use the money to pay for qualified education expenses. Plus, Invest529 account owners who are Virginia taxpayers may deduct contributions up to $4,000 per account per year with an unlimited carryforward to future tax years, subject to certain restrictions. Those age 70 and older may deduct the entire amount contributed to a Virginia529 account in one year.
• Affordability: Invest529 stands out for its affordability. It does not charge online application fees, annual maintenance fees or withdrawal fees for qualified education expenses. Additionally, the administrative fees associated with Invest529 are among the lowest in the nation.
• Flexibility: With Invest529, you have flexibility in using the savings. The accounts can be used to fund qualified education expenses at various institutions across the country and even overseas. Whether you’re considering public or private universities, graduate programs, vocational schools, private or religious K-12 schools, apprenticeships or student loan repayment, Invest529 provides the flexibility to meet your needs.
• Expenses Beyond Tuition: Invest529 savings can pay for more than tuition costs. You can use the savings to cover other qualified education expenses such as room and board, computers and related technology expenses, fees, books, supplies and necessary equipment.
• Reliable Management: Invest529 is highly regarded and expertly managed. It consistently earns top rankings among 529 plans according to independent sources. The plan’s low fees, tax advantages, flexibility and diverse investment options make it a reputable choice for your college savings strategy.

By using 529 plans, you can proactively prepare for higher education costs and ensure that you have the resources necessary to pursue your academic goals. It’s never too early to start saving and investing in your future! Learn more at Virginia529.com and try the 529 online calculators to get a realistic picture of how much you’ll need to save for your education.