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 $550,000 for a single beneficiary.