The Virginia College Savings Plan Virginia529.com is an independent state agency that offers four Internal Revenue Code Section 529 tax-advantaged college savings programs. The programs the Virginia Prepaid Education Program (VPEP), the Virginia Education Savings Trust (VEST), CollegeAmerica and CollegeWealth are designed to meet individuals' and families' budgets, savings styles, risk tolerance and higher education time horizons while providing a range of tax and other benefits, depending on the program selected and the residency of the participant.
Funds in a Virginia 529 account may be used for qualified costs related to undergraduate and graduate studies at public and private technical schools, community colleges and universities across the country and, in some cases, around the world. Accounts also may be used for continuing education and to enhance technical and professional skills.
The Virginia 529 plan offers significant tax advantages. All accounts, regardless of the account owner's residency, may grow tax free and distributions remain tax free as long as they are used to pay qualified higher education expenses, including tuition and mandatory fees, room and board, special needs services, textbooks, supplies and computers. Beginning with 2009 returns filed in 2010,Virginia taxpayers also receive up to a $4,000 state income tax deduction for each account, with an unlimited carryforward until all contributions have been deducted.
The Virginia College Savings Plan is the largest 529 plan in the country, with nearly 2 million account owners and $23.5 billion in assets under management as of June 30, 2009.
Top Ranked
In 2008 and again in 2009, the Virginia College Savings Plan was recognized by Morningstar Inc., a leading provider of independent investment research in North America, which ranked two of Virginia's 529 programs CollegeAmerica and VEST among the "Best Five" college savings programs in the country. Virginia's 529 programs are marked by their affordability, flexibility, diversity of investment options, strength of underlying managers, and superior customer service.
Three Virginia 529 programs VEST, CollegeAmerica and CollegeWealth are available year-round to anyone without age or state residency restrictions and may be used to pay all qualified higher education expenses. The fourth option VPEP is a prepaid tuition and mandatory fee option with a limited enrollment period and either the account owner or beneficiary must be a Virginia resident at the time a VPEP contract is purchased.
Making a Difference
The Virginia College Savings Plan is dedicated to assisting individuals and families plan and save for higher education and to making college more affordable and accessible to everyone. Our outreach programs annually include presentations for parent-teacher associations, company benefit fairs, community organizations and professional groups.
In recent years, we have expanded public awareness efforts by setting up information booths at the Virginia State Fair, which, in 2008, attracted about 350,000 visitors, as well as fairs and expos across the Commonwealth.
In its pursuit of excellence, the Virginia College Savings Plan is proud of its partnerships with numerous media, education and athletic organizations, including:
- Virginia affiliates of National Public Radio (NPR), as well as other broadcast outlets such as Richmond's Radio Disney and WTVR-TV, which hosts the VCSP-sponsored "Battle of the Brains" high school academic quiz show;
- The Virginia High School League (VHSL), which has sponsored student competitions in the arts, forensics and sports since 1913. Today, 312 public high schools and more than 200,000 students annually participate in VHSL events supported by Virginia 529.
- The Richmond International Raceway, where the VCSP sponsored the Virginia 529 College Savings 250 a NASCAR-related race on Sept. 11, 2009. As one of the nation's fastest growing sports, NASCAR opens a new, diverse and nationwide audience to the Virginia College Savings Plan and our message about the benefits of higher education and the need to plan and save to reach those goals