A 529 Plan can be applied to any Virginia private college. These plans are operated by a state or educational institution and offer unsurpassed income tax breaks. Although contributions are not federally tax deductible, all account owners with Virginia taxable income may deduct up to $4,000 per year/per account. Federally, your investment grows tax-deferred, and distributions to pay for the beneficiary's college costs are tax-free.
The Virginia College Savings Plan sponsors four savings programs:
The Virginia Education Savings Trust (VEST) – This program allows you to save for college costs, including tuition, fees, room and board, required books, supplies and computers, through a variety of professionally managed investment options. VEST has no age or state residency limits.
CollegeAmerica® – This program is available only through financial advisers, and allows you to invest in one or more mutual funds. CollegeAmerica has no age or state residency limits.
CollegeWealth® – This program is a partnership that provides FDIC-insured deposit accounts at participating banks. CollegeWealth has no state residency restrictions or age limits.
The Virginia Prepaid Education Program (VPEP) – This program allows you to prepay the future cost of a college education and apply the amount to the tuition at any Virginia private college. Beneficiaries can be enrolled through 9th grade, and either the account owner or the beneficiary must be a Virginia resident.
More information about Virginia College Savings Plans.