An account holder may change investment portfolio options (Investment Direction or Investment Option Change) twice per calendar year per beneficiary.If there is a change in beneficiary, an investment change can also be made at the same time.
Yes, an account owner may have multiple portfolios for the same beneficiary and each portfolio is a separate account. The account owner may not have two of the same portfolios for the same beneficiary. For instance, an account owner could not have two 2039 portfolios for the same beneficiary but could have a 2039 portfolio and an ESG Core Equity portfolio for that same beneficiary.
The only insured portfolio is the FDIC-Insured Portfolio and this portfolio is insured by the Federal Deposit Insurance Corporation (FDIC) to the fullest extent permitted by law. All other Invest529 portfolios are subject to market risk including loss of principal.
You may choose any of the Invest529 portfolios, but Target Enrollment portfolios are designed for college savers. Since there is a shorter time horizon when the money will be needed for private, public, or religious K-12 schools, you may want to take this into consideration when choosing a portfolio. There are Invest529 portfolios that have conservative and stable investment strategies as well as more aggressive options, but it is ultimately up to you to choose the portfolio that best meets your risk tolerance and time horizon.
You may choose any of the Invest529 portfolios, but Target Enrollment portfolios are designed for college savers. Since there is a shorter time horizon when the money will be needed for private, public, or religious K-12 schools, you may want to take this into consideration when choosing a portfolio. There are Invest529 portfolios that have conservative and stable investment strategies as well as more aggressive options, but it is ultimately up to you to choose the portfolio that best meets your risk tolerance and time horizon.
For more information about Target Date Portfolios, view the blog article: Three Things to Know About: Target Enrollment Portfolios.
Contributions may be made online at Virginia529.com or by check, online bill pay or, for participating employers, direct deposit.
First, read about the programs Virginia529 offers, specifically the Program Description for the program(s) in which you are interested. After you have selected a program, select "Open an account" from the top of any page to gather the information you need to get started. After you create an online user profile, you can complete the application for Invest529. To open a CollegeAmerica account, contact your financial advisor or visit americanfunds.com.
Any non-retirement investment or savings account may affect eligibility. For accounts owned by parents and dependent students, the Free Application for Federal Student Aid (FAFSA) assesses 529 assets at a maximum of 5.64 percent of the value when calculating the Expected Family Contribution (EFC) for financial aid eligibility. Accounts owned by other parties will impact eligibility differently. For more information, consult studentaid.gov or an educational financial aid advisor.
Yes. Accounts can be cancelled at any time. Keep in mind that earnings that are not used for qualified higher education expenses are subject to a 10 percent federal tax penalty (with certain exceptions for death, disability and scholarships), plus federal and state income taxes on the earnings reportable on the taxpayer’s return, and the recapture of any Virginia tax deduction previously taken on the amount of the cancellation or refund.
You have thirty years after the beneficiary’s projected high school graduation date, or thirty years from when the account was opened (if opened after the beneficiary’s high school graduation) for Invest529 and CollegeAmerica accounts. You have ten years after the beneficiary’s projected high school graduation date to use a Prepaid529 account. Virginia529, in its sole discretion, may grant extensions of time in which to use a Virginia529 account.
Account ownership can be transferred at any time to an individual 18 years of age or older and a U.S. citizen or legal U.S. resident. Account benefits can be transferred to a member of the current beneficiary’s family without penalty. Penalties may apply if transferred to an individual who is not a member of the current beneficiary’s family. Please read the applicable Program Descriptions and consult your tax adviser for more information.
Yes! Anyone may contribute to your Virginia529 account, but only account owners may take the Virginia state income tax deduction for contributions.
Accounts may grow tax-deferred and are tax-free of federal and Virginia taxes when withdrawals are used for Qualified Higher Education Expenses. Virginia taxpayers who are Virginia529 account owners can deduct their contributions up to $4,000 per account, per year, with unlimited carry forward to future tax years.
No state residency restrictions exist for Invest529 or CollegeAmerica.
No. All of our accounts, including Prepaid529, can be used at any eligible educational institution around the country or the world, public or private! Benefits of Prepaid529 contracts differ depending on how and where they are used. Please see the applicable Program Descriptions for more information.
Yes. Many families choose to enroll in multiple Virginia529 programs. Account values across all programs may not exceed $550,000 per beneficiary.
Yes. Most vocational, technical, and graduate schools are eligible educational institutions. Check the eligibility of a specific school online at fafsa.ed.gov using the “School Code Search” or contact the school directly. Benefits of Prepaid529 contracts differ depending on how and where they are used. Please see the applicable Program Descriptions for more information.
Yes! Please visit this Virginia529 page for details.
Account owners must be 18 years of age or older and a U.S. citizen or legal U.S. resident to open an account, while the beneficiary must be a U.S. citizen or legal U.S. resident to be named to an account. The account owner may also be a U.S. trust, corporation, partnership, nonprofit organization, custodian, guardian or other entity. Only Prepaid529 requires the owner or the beneficiary to be a Virginia resident at the time the account is opened.
If your name has recently changed due to marriage, divorce or another legal matter, the account owner must complete and submit a Change of Name Request Form, which can be requested by contacting Virginia529 Customer Service.
You will also need to submit ONE of the following:
- Marriage certificate showing former and new names, and date of marriage
- Divorce decree that states a name change was granted
- Court order or other legal documentation referencing the former and new names
- Birth certificate indicating the correct name spelling if requested change is to correct a spelling error
AND
- Unexpired government-issued photo identification (such as a driver’s license or passport). The Account Owner should provide their identification if the name change is for a minor.
The update can take up to 30 days after the required documentation is received. The new account owner will receive notification of the update via mail.
Please send a copy of the Account Owner’s death certificate and complete as much of the information on the form as you know.
If an Account does not have a valid Designated Survivor at the time of the Account Owner’s death, Virginia529 reserves the right to designate the current Beneficiary of the Account as the new Account Owner. If the current Beneficiary is under the age of 18, Virginia529 may designate the deceased Account Owner’s executor or administrator, if any, as the custodian under the appropriate UTMA/UGMA statute for the current Beneficiary until the current Beneficiary reaches the age of 18. If no executor or administrator was named or appointed, Virginia529, in its sole discretion, may designate a parent of the current Beneficiary or other third party as
the custodian.