529 College Savings Plans

The information and links on this page are not associated with the Knights of Columbus!  I added them here as a service to the members I serve since saving for your children’s college is the second most important thing you can do after insuring yourself to protect their future!    

Note: There are many places to invest in a 529 plan so do some research!  I just provided a link to the Securities & Exchange Commission and a link to the Virginia 529 Plans just to get you started.

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"An Introduction to 529 Plans"
           From the U.S. Securities & Exchange Commission
 
The link above is a great place to start!  Here are just some of the questions they answer there:
1. What is a 529 Plan?
2. What are the differences between pre-paid tuition plans and savings plans?
3. How does investing in a 529 plan affect federal and state income taxes?
4. What fees and expenses will I pay if I invest in a 529 plan?
5. What restrictions apply to an investment in a 529 plan?
6. Is investing in a 529 plan right for me?

                             
 

"Welcome To The Virginia College Savings Plan"

           Making a college education more affordable for everyone 
 
With 4 different savings plans listed below, we give more options to more people. On our site you'll find the tools, information and comparisons to evaluate and choose the plan that best suits your budget and savings style.

When should I consider opening a 529 plan? 

Now. Time is money, especially when saving for college. Virginia's 529 plans offer the building blocks to a better financial position when it's time to make the big college payout. So start saving today. And savor the peace of mind tomorrow.

Is a college education worth the money?

It is if you read the latest data from the Census Bureau. It shows that college graduates earn $23,000 a year more on average than those with a high school diploma. Multiply that over the course of a lifetime and the education investment pays for itself several times over.

Program Descriptions:

1. VirginiaPrepaid Education Program^™ (VPEP)

                          Buy tomorrow's college education today.

ALERT,,, VPEP Enrollment For This Year Closes February 29, 2008!!!

VPEP is one of the Section 529 qualified tuition programs offered by the Virginia College Savings Plan. VPEP lets Virginia families lock in the cost of tomorrow's college tuition and mandatory fees. Contract payments cover future in-state undergraduate tuition and mandatory fees for the normal full-time course load at Virginia public colleges and universities. VPEP benefits may also be applied toward the cost of tuition and fees at Virginia private colleges as well as at most colleges and universities nationwide, and in certain cases, at schools around the world.

Tuition and fees have risen 11.2% in five years at Virginia public colleges. Shouldn't you think about locking in now?

The trend in escalating tuition and fees is expected to continue, so imagine how much college will cost when your child is ready to go. Virginia's Prepaid Education Program allows you to lock in today's tuition costs, so even if tuition and mandatory fees go up, your costs don't. Add to that the tax-free withdrawals for qualified expenses and you'll see it's a great investment opportunity.

2. Virginia Education Savings Trust^™  (VEST)

No age limits or state residency requirements. Open one any time.

The Virginia Education Savings Trust is an Internal Revenue Code Section 529 qualified tuition program. VEST is an individual savings account, invested in your choice of portfolios of stocks and bonds, intended specifically for the payment of qualified higher education expenses for the designated beneficiary.

VEST has no state residency requirements and no age limits. VEST is open year round and accounts may be opened at any time.

VEST can be used for a wider range of qualified higher education expenses than VPEP. Start saving now to help avoid debt later.

3. CollegeAmerica^™

Offering customized tax-free 529 investment accounts.

CollegeAmerica is the Virginia College Savings Plan's partnership with the American Funds, one of the oldest and largest mutual fund companies in the country.  Unlike other 529 plans, CollegeAmerica offers the unique opportunity to choose from 22 American Funds while working with your financial adviser to build a college savings plan that meets your specific needs.

CollegeAmerica, available only through financial advisers, allows you to save tax free for qualified higher education expenses, including tuition, mandatory fees, room and board, textbooks, supplies, and equipment required by a college for a student's enrollment.

Contact your financial adviser for more information on CollegeAmerica or contact the American Funds at 1-800-421-4120 or visit www.AmericanFunds.com for more details. 

4. CollegeWealth^™ 

CollegeWealth, the Commonwealth’s newest 529 college savings plan, is the Virginia College Savings Plan’s partnership with more than 50 local, regional and statewide financial institutions throughout Virginia.

CollegeWealth will help families benefit from the tax-free advantages of 529 accounts – and guarantee the safety of their money – by offering through participating banks the opportunity to save for their children’s or their own higher education. CollegeWealth will build on the existing relationships that customers have with their banks to create tax-free and often state tax deductible 529 college savings accounts and Certificates of Deposits (CDs).

An affordable and familiar way to save, CollegeWealth is expected to appeal to risk-averse investors since each college savings account or CD with a value up to $100,000 (when combined with any other holdings of an individual at any one bank) is backed by the Federal Deposit Insurance Corporation (FDIC).

Click here for a list of participating bank

Other features include:

• CollegeWealth is flexible, with no state residency requirement and no income phase outs;
• CollegeWealth is affordable for parents and grandparents alike, with account deposits and interest rates established by each participating bank or financial institution;
• CollegeWealth is adaptable since account owners may work with the participating bank of their choice while saving on their own budgets and timetables.

Like Virginia’s three other 529 plans, CollegeWealth account contributions will grow free of federal taxes.Withdrawals also will be tax free when used for qualified higher education expenses, including tuition, fees, room and board, textbooks, and equipment required by a college for enrollment.

Virginia taxpayers receive a $2,000 a year state tax deduction – with an unlimited carryforward – for every dollar saved in each separate CollegeWealth account.