Promotion Of 529 Plans In Virginia

Almost every state has now taken advantage of the extraordinary opportunity Congress devised in 1996 and 1997 with the creation and subsequent expansion of Internal Revenue Code Section 529.

The unique federal and state tax advantages of a "qualified state tuition program" have catapulted these types of college savings vehicles to the top of the list of investment strategies for higher education. Virginia families need look no further than their own state's 529 plan to find the best the nation has to offer.

The Virginia College Savings Plan is one of only three 529 plans that offers both prepaid tuition and savings trust options: the Virginia Prepaid Education Program (VPEP) and the Virginia Education Savings Trust (VEST).

Unlike other states, Virginia operates both of its 529 plans under one independent state agency without any state funds and uses 11 different private investment managers to invest participants' contributions. In addition to the remarkable federal income and estate tax benefits, both plans also offer state tax advantages that are not available anywhere else in the marketplace.