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).
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.
Family – including grandparents – and friends can give the gift of education by contributing to your Virginia529 account.
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.Virginia529 account tax benefits
Virginia529 accounts are open to all ages. While Prepaid529 has age limitations and a limited enrollment period, Invest529 and CollegeAmerica can be opened at any time for anyone – even adults.
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. ↩