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Back to school: Understanding 529 College Savings Plans

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“It's back-to-school time and let's face it — education can be expensive.

The College Board reports that the average cost of in-state tuition, fees, room and board at a public four-year college in the U.S. was $20,770 last year. And that's just a starting point — out-of-state tuition, private universities or graduate school can greatly increase that bill.

Yet relatively few people are aware of 529 savings plans, which can help cover costs. A recent survey by Edward Jones found that 71 percent of Americans don't even know what they are.

A 529 is a tax-advantaged investment plan that was originally designed to save for higher education expenses. Recent changes in the tax law have increased their flexibility, and they now may be used for private-school tuition from kindergarten through high school, or transferred to other accounts to pay expenses for disabled youths.”

Read more at the Daily News.


Smart Savers Blog


Resources to help you learn

Virginia529 offers free, in-person information sessions at locations across Virginia. These hour-long sessions highlight the program’s three plans, explain the benefits to account owners and give you the chance to get your questions answered. If you don’t live near one of our in-person sessions, Virginia529 offers online webinars where you can learn more from the comfort of your own home.