The money you save is always yours
Should plans change – if your student receives a scholarship or doesn’t pursue higher education – the money you saved is still yours. You can reserve the money for graduate school, transfer the account to a member of the family without penalty or withdraw the funds (non-qualified distributions may incur certain tax payments and penalties).
It’s not just for college
Virginia529 accounts can fund many qualified higher education expenses for eligible four-year colleges, two-year colleges, graduate schools, trade schools, training programs and tuition at private or religious K-12 schools.
In state, out of state, public or private … go anywhere!
Use your Virginia529 account at an eligible educational institution around the country – or even the world. Plus, accounts are flexible and can fund qualified higher education expenses at public or private colleges.
Help from others
Family – including grandparents – and friends can give the gift of education by contributing to your Virginia529 account.
Tax savings
Save for education and save on your taxes. Earnings grow free from state and federal taxes and are never taxed when used for qualified higher education expenses. Plus, Virginia taxpayers may deduct up to $4,000 per account per year from their Virginia state individual income taxes.
Benefits of Tax-Free Earning 1, 2
Save for yourself
Virginia529 accounts are open to all ages. Invest529 and CollegeAmerica can be opened at any time for anyone – even adults.
Smart Savers perks
Opening a Virginia529 account grants you membership to the Smart Savers Club, with exclusive rewards and discounts.
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
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. ↩
2. This example assumes a federal tax rate of 25 percent and a Virginia tax rate of 5.75 percent. ↩