Virginia 529 College Savings Plan
What is a 529 Plan? It’s currently offered by all 50 states and the District of Columbia and it gets its name from Section 529 of the Internal Revenue Code, which established federal tax advantages for qualified college savings plans. These plans help you plan and save for qualified higher education expenses at eligible educational institutions.
There are two basic 529 plan options – prepaid tuition programs, which in most cases allow families to prepay for future in–state public college tuition and mandatory expenses and savings programs.
The tax benefits of 529 plans are similar to those for 401K retirement savings, but upon withdrawal earnings are tax free when used for qualified higher education expenses. In addition, some states like Virginia, offer income tax benefits for those who contribute to that state’s 529 plan.
Visit Virginia529.com to explore plan options to save for college.