529 College Savings Plan
What is a 529 Plan?
A good option for saving for college is the 529 Plan.
This is depositing funds into a College American Plan, held by American funds. The funds you are investing typically grow over time. The growth is tax free and is used for qualified education expenses, which can include:
room and board
a meal plan
a laptop or computers
If the funds are withdrawn and not used for education, then the growth is taxed and penalized.
The account beneficiaries on this plan can change if children may not need to use them. Up to $4,000 of the amount contributed to the Virginia 529 Plan can be deducted from your Virginia tax return.