An increasing number of parents are saving to fund their children’s college costs, according to the College Savings Foundation’s sixth annual State of College Savings survey. In addition,the use of tax-advantaged 529 college savings plans is growing. However, much work remains to be done, with the survey also finding two-thirds of parents expect their children to contribute more financially and more than two-thirds expect to rely on student loans to cover the costs of college.
To raise awareness about the importance of saving for higher education and the tax advantages of 529 plans, Virginia529 College Savings Plan (Virginia529) joins other 529 plans around the United States to celebrate 529 College Savings Day on May 29, 2013.
VA529 will Award $15,000 in Contributions
This month, Virginia529 will award more than $15,000 in contributions to college savings accounts to multiple winners.
- Two $5,000 Virginia529 account contributions will be awarded, one to an existing Virginia529 account owner and one to get a family started with Virginia529.
- In addition, babies born closest to 5:29 p.m. on May 29 at participating hospitals across the state will win accounts with $529 opening balances.
“This is our fifth year participating in 529 Day celebrations statewide,” said Mary G. Morris, Virginia529’s CEO. “We want families to start a conversation about college costs and get started saving. Families already participating with Virginia529 can check up on their accounts, consider making regular contributions via payroll deduction or automatic electronic deposits, or just commit to increasing their existing saving levels. And, we hope families saving for college outside a 529 plan will look at the advantages of using a 529 account as their primary savings vehicle.”
Types of Plans, Minimum Contributions, and More
Virginia529 offers four tax-advantaged college savings programs, including:
- two investment programs
- a prepaid tuition program
- an FDIC-insured high-yield savings account program available through BB&T and Union First Market Bank®
Funds in Virginia529 programs can be used at public and private eligible educational institutions worldwide. The minimum contribution to open an account is $25 and contributions grow free from state and federal taxes when used for qualified higher education expenses. In addition, Virginia taxpayers may deduct up to $4,000 per year per account from individual state taxable income.
Be sure and use your Richmondmom.com Savvy Saver Card to save on registration fees – use code to waive fees: “RICMOM”.
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