Skip to main content

Basics

Save for future qualified higher education expenses in tax-advantaged accounts by Virginia529.

Career aspirations vary, but all require training and education. Paying for this out of pocket can be a challenge, and loans can saddle you or your child with substantial debt.

Fortunately, saving with Virginia529 lets time and planning work to your advantage.

What is a 529 plan?

A 529 plan is a savings plan that helps families save for future qualified higher education expenses.

In a 529 account, your money can grow free from federal taxes and be used to fund qualified higher education expenses at eligible educational institutions nationwide. Virginia taxpayers enjoy the additional benefit of a state income tax deduction on contributions to their Virginia529 accounts.

Starting January 2018, you can also use up to $10,000 per year in 529 funds toward a beneficiary's private or religious K-12 school tuition.

A 529 account can be set up for anyone, including yourself – and you can change the beneficiary to another family member without penalty at any time.

The maximum savings amount is substantial, with Virginia529’s total contribution limit set at $500,000 for a single beneficiary.

Plan now to meet tomorrow’s education needs

The Cost of Waiting 1
Chart

The sooner you start, the more your savings can grow. Saving $100 a month, for example, could yield nearly $40,000 after 18 years. 1

Delaying, on the other hand, can be costly. In the example, waiting one year to begin saving could reduce your account by $4,000. Delaying five years could cost you $16,000 in growth.

See more benefits to help choose

You can open an account with as little as $10 and save at your own pace through a choice of two programs:

Savings programs

Save at your own pace through options ranging from an FDIC-insured bank savings account to investment portfolios

Work with your financial advisor to reach your savings goals

For any qualified higher education expense, including tuition, room and board, textbooks, computers, required supplies and equipment or private or religious K-12 tuition

Resources to help you learn

Virginia529 offers free, in-person information sessions at locations across Virginia. These hour-long sessions highlight Virginia529’s award-winning savings programs, explain the benefits to account owners and give you the chance to get your questions answered. Online webinars are also available so you can learn more from the comfort of your own home.

Register or request a session

1. This chart is for illustrative purposes only and is not intended to reflect actual performance of any specific investment. Assumes interest rate of 6.25 percent compounded monthly. The value of your Virginia529 account will vary depending on market conditions and the performance of the investment option you select, and it may be more or less than the amount you deposited. You could lose money – including the principal you invest – or not make money if you invest in one of these programs. Past performance of investments is not an indicator of future returns. ↩