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.
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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 fafsa.ed.gov or an educational financial aid adviser.
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 $500,000 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:
AND
Prepaid529 permanently closed for new enrollment as of May 1, 2019. Virginia529 is changing the program’s benefit structure and is in the process of creating a new similar program. Details for the new program are still being finalized. There will be no changes to existing Prepaid529 contracts, and current contracts will retain the Prepaid529 benefit structure in effect at the time of purchase.
Earnings grow free from state and federal taxes when used for qualified expenses. Taxpayers may deduct from individual Virginia taxable income contributions of up to $4,000 per account per year made to a Virginia529 account. If you contribute more than $4,000 to an account in one year, you may deduct up to $4,000 per year until you have claimed all of your contributions.
Prepaid529 funds undergraduate in-state tuition and mandatory fees assessed to all students at Virginia public two- and four-year institutions. It does not cover room and board, books, supplies and other qualified higher education expenses. Prepaid529 also does not cover any additional charges of any type for specific courses of study, such as nursing or engineering, that an institution may require or for more than a normal full-time course load. Some families choose to save for these other costs with a Virginia529 savings account, such as Invest529 or CollegeAmerica, as a child may be the beneficiary of more than one Virginia529 account.
Virginia public institutions of higher education include a number of options, giving you a great deal of choice for using your Prepaid529 account. Find a list on the website of the State Council of Higher Education for Virginia (SCHEV) under “Virginia Public Colleges and Universities.” Note: you may use your Prepaid529 account toward tuition at schools listed under “Private & Out-of-State Institutions” on this page, however your benefit will be different and may not cover the full cost of tuition and mandatory fees.
No. Students can use Prepaid529 accounts at private Virginia colleges and universities and schools outside of Virginia, but the benefits differ.
At private colleges and universities in Virginia, Prepaid529 pays the lesser of the following:
At public or private colleges and universities outside Virginia, Prepaid529 pays the lesser of the following:
* This is determined by the Virginia529 Board and currently follows the quarterly performance of the Institutional Money Funds Index as reported in the Money Fund MonitorTM by iMoneyNet.
Prepaid529 should not affect a student’s eligibility for merit–based scholarships. If your child receives a scholarship, you have several options including:
529 accounts, including Prepaid529, may have an impact on financial aid offers from colleges and universities. In the calculation of a student’s Expected Family Contribution (EFC) for financial aid, 529 accounts with a parent or a dependent student listed as the account owner are assessed at a maximum of 5.65 percent of the account’s value, depending on other reportable household assets. 529 accounts owned by an independent student, a non–custodial parent or a third party (for instance a grandparent) are assessed at higher rates.
A child must use a Prepaid529 account within 10 years of the date he or she is projected to graduate from high school. However, extensions of this time limit will be considered for military service or other reasons.
You can elect to continue to own and make payments to your Prepaid529 account. Your child may use his or her paid-in-full account at any eligible institution to which he or she applies and is accepted. However, if your child chooses to attend a Virginia public college or university and is no longer eligible for in-state tuition, Virginia529 will not pay the difference between the in-state and out-of-state resident rates.
Virginia529 offers two other programs to help families save in advance for higher education. Invest529 and CollegeAmerica have no residency limitations, are open for enrollment year–round and allow families to contribute as much and as frequently as they desire.
Family, friends, or anyone can give to an existing Virginia529 account.
The Gift ID is anonymous and is safe to be shared any way you want – in person, over the phone, through social media, etc.
Your personal Gift ID can be retrieved from the secure Virginia529 online account portal. Once logged in, select the Gift Center link in the main navigation. On the Gift Center home page, scroll down “Gift ID Information” and select the appropriate account (if more than one) and copy your Gift ID.
You could give up to the maximum allowable account balance across all Virginia529 programs, which is $500,000 per beneficiary.
Virginia529 doesn’t charge fees to the giver or the account owner for making contributions through the online Virginia529 Gift Center. However, Virginia529 and/or your financial institution may assess fees for rejected transactions or insufficient funds. Gift cards purchased at Target and H-E-B retail locations, and online at Walmart.com include a convenience fee to cover distribution and processing. The gift card fee is paid by the gift card purchaser and the gift recipient receives the gift card amount.
Gifts of up to $15,000 per year, or up to $30,000 if married, to any one person are gift tax free.
You should consult a professional concerning any financial, tax or legal implications related to making a gift contribution to a Virginia529 account. Virginia529 does not provide legal, financial or tax advice to any person making a gift.
U.S. citizens or legal U.S. residents age 18 or older may open a Virginia529 account for a beneficiary—family member, friend, or even yourself.
No. Anyone may contribute to a Virginia529 account as long as they have the account owner’s Gift ID.
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 fafsa.ed.gov or an educational financial aid adviser.
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.
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.
Purchasing additional Tuition Track Portfolio Units is simple. Log in to your Virginia529 account and select “Manage My Accounts,” then “One-Time Contribution.” After you select the bank account you’d like to use for the contribution, you’ll be able to select your Tuition Track Portfolio account and the amount you’d like to contribute. Use the Tuition Track Calculator to determine how many additional units you’d like to purchase.
Every year the Average Tuition at Virginia public colleges and universities, weighted by enrollment, is calculated by Virginia529. That number is divided into by 100 to determine the cost of an individual Tuition Track Portfolio unit. For example, if the Average Tuition for the 2020-21 year was $15,000, the cost per unit would be $150. If the Average Tuition for the 2021-22 year was $20,000, the cost per unit would increase to $200 for new units. The value of previously purchased units will keep pace with Tuition growth.
Funds can be moved from the Tuition Track Portfolio to other Invest529 portfolios. The value depends on whether the Tuition Track Portfolio account has reached the Expected Usage Date and whether or not the funds have been held for three or more years.
Tuition Track Portfolio units may be used for K-12 tuition. However, the value will be based on whether the units being withdrawn have been held for at least three years and whether the account has reached the Expected Usage date. As with Prepaid529, Tuition Track accounts are designed to be used for post-secondary education.
Yes, account owners can transfer units to younger and older siblings, and to the Members of the Family of the beneficiary within the same generation of the original beneficiary who are eligible at the time of the beneficiary change. The Expected Usage Date will change as the beneficiary changes.
Account owners who were Virginia residents when their account was opened can continue to purchase Tuition Track Portfolio units after they’ve left the state.
The Tuition Track Portfolio Unit Price adjusts annually on or around July 1, however account owners will receive advanced notice of the price changes.
Yes, an account owner can set up recurring contributions directly to a Virginia529 account from another linked bank account or use the Direct Deposit Assistant at myaccount.virginia529.com to have funds deducted by their employer and contributed directly to a Virginia529 account.
Yes, this type of transfer is called a rollover. The account owner should first open an Invest529 account and then complete the Move Funds or Change Investment Portfolio process online, which authorizes Virginia529 to request the rollover from another 529 plan (also known as a qualified tuition program).
Funds may also be rolled over from Coverdell Education Savings accounts or Qualified U.S. Savings Bonds. See the Invest529 Program Description for more information.
An account can be opened with as little as $10. Subsequent contributions are not required, allowing you to save at your own pace.
Yes, but the unborn child cannot be the beneficiary of the account. The account owner must provide the name and Social Security number or individual Taxpayer Identification Number of the beneficiary at the time of application. This prevents parents from opening a 529 plan for a child before the baby is born.
However, an account owner can make themselves the beneficiary of the account and once the child is born and a Social Security number has been assigned to the child, the account owner can request to change the account beneficiary from themselves to the child.
Yes, a Virginia529 account owner may select multiple portfolios, and each portfolio selected creates a separate account. Although a student beneficiary can have multiple accounts, an account owner may not have two accounts in the same portfolio for the same student beneficiary.
Account owners must be 18 years of age or older and a U.S. citizen or legal U.S. resident to open a Virginia529 account, while the beneficiary must be a U.S. citizen or legal U.S. resident. The account owner may also be a U.S. trust, corporation, partnership, nonprofit organization, custodian, guardian or other entity.
To open a Tuition Track Portfolio account, either the account owner or the student beneficiary must be a resident of Virginia at the time the account is opened.
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. See the Prepaid529 page for more information on using your Prepaid529 benefits.
It’s not required to report withdrawals used for qualified higher education expenses on your federal tax return. Virginia529 will issue an IRS Form 1099-Q (Qualified Tuition Program Payments) each year in which a withdrawal is made:
The same qualified higher education expense may not qualify for more than one tax benefit (e.g. tax-free withdrawals AND a federal tax credit).
For more information, view the blog article 529 Plans and Your Tax Return, the 1099-Q Fact Sheet, or the Invest529 Withdrawal Guide.
If you are a Virginia taxpayer, non-qualified withdrawals may require the recapture of prior Virginia income tax deductions. If you live outside of Virginia, please check with your state’s tax department to determine your state’s treatment of income from another state’s qualified tuition program.
Find information about tax benefits for education including examples, in IRS Publication 970, also available by calling the IRS toll-free at 1-800-829-1040. Your tax consequences depend on your individual circumstances. You should consult a tax advisor regarding specific tax consequences of taking withdrawals from your Virginia529 account(s).
No, you will only receive a Form 1099-Q if you withdrew funds from or closed your Virginia529 account. Internal Rollovers, Investment Directions and Transfers within Virginia529 will not generate a 1099-Q.
Account owners can access their Form 1099-Q in their online account at Virginia529.com.
If a withdrawal was made directly to a beneficiary or the beneficiary’s eligible educational institution, then the beneficiary will need to set up their online login at Virginia529.com to access their Form 1099-Q.
If funds were withdrawn from your Virginia529 account in 2020, tax documents providing the 2020 withdrawal information (IRS Form 1099-Q) will be mailed on or before January 31, 2021.
To prevent delays in receiving your Form 1099-Q, you should log in to your Virginia529 account online at Virginia529.com and verify that your address and the beneficiary’s address are up to date.
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 fafsa.ed.gov or an educational financial aid adviser.
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.