Which virginia 529 plan is the best

Then read this! These funds can be helpful if you have multiple accounts you are trying to coordinate an asset allocation across. Or if your brother-in-law is a broker and it saves you from purchasing an annuity Different share classes have wildly different costs. You will want to know exactly what you are paying. All three of our kids have an Invest account, and we are using a little bit of Prepaid tuition for the older two kids.

How to maximize your VA account. Is there a college-savings rule of thumb? Email address:. Hi Johnathan — thanks for commenting! Saving for college can definitely feel daunting but understanding your options is the first step. I might be able to turn your question into a blog post to help others. I was going to open an account for my 1 year old daughter using Vanguard, but it seems using the VA will give me a tax advantage since I live in Fairfax, VA.

Do you have any information on that? Here is a link to the fees and expenses for the various Invest investment options:. This may be easiest to view on a desktop. I believe that the passively managed static-risk they do not adjust for risk as your daughter gets older, you will need to make those decisions own Vanguard funds.

Even in the age-based and active portfolios the total portfolio fees range from about 0. I have thought about opening a for my nephew and 2 nieces.

I met with a financial advisor twice since moving to northern Virginia, however the 2nd time we discussed life insurance more than s. After learning Vanguard offers a Virginia Invest with low fees I may open age based ones with them.

Hi Casey, Vanguard does have a plan option but if you are a Virginia resident you will not be able to deduct contributions to the Vanguard plan off of your state income taxes. Virginia residents can only deduct contributions made to the VA plan with limits. I actually talked about this practice in an article I wrote for Richmond Family Magazine.

Sorry for the delay, I wanted to check with VA on this because there is a little wrinkle you need to be aware of here. You can roll over 2 fully funded semesters to your other child. For example, if your oldest was a senior and your younger child was a sophomore, you would have to wait until the oldest stopped using the pre-paid benefit before you could roll it down to your younger child.

Your email address will not be published. Notify me of follow-up comments by email. Notify me of new posts by email. Don't have an account? Sign Up. Once entered, we will send a key to the e-mail address you specified. Virginia operates a multi-manager, direct-sold college savings program Invest and an advisor-sold plan CollegeAmerica utilizing American Funds. Both Virginia plans are available to residents of any state. Virginia's prepaid tuition program Prepaid closed to new enrollment as of April 30, More about each Virginia plan is available in the following links.

Consumer plans fall under three categories: direct-sold, unit-type prepaid, and contract-type prepaid. You will have to rely on your own research to identify your best options, or you can hire a fee-based financial planner.

Direct-sold plans are approved and monitored by each state and are managed by professional investment firms. There are no sales charges with these plans. Unit-type prepaid plans allow you to buy 'units' of tuition which may equate to credits or hours. Contract-type prepaid plans can be purchased to cover between 1 to 5 years of future tuition either on a lump sum or installment basis. Invest, Virginia's direct-sold college savings plan is available to residents of any state, and offers low fees, diverse investment options and tax benefits for residents.

Advisor-Sold plans are sold only through financial advisors. The cost of investing in the CollegeAmerica advisor-sold plan depends on which portfolio option you choose as well as its corresponding share class. An example is a sales charge, which can vary depending on share class as well as other circumstances. Portfolios with share Class A units for example charge an initial sales charge, which is taken from each contribution.

Portfolios with share Class C units charge a contingent deferred sales charge CDSC , which usually kicks in when you take money out of the plan within a certain time after putting it in.

In addition, each portfolio charges a total annual asset-based fee as portfolios in the direct plan. You should have a thorough discussion with your advisor about which portfolio and share class option is best for you based on your risk level, savings goals and the amount of time you plan to invest.

So your contributions grow tax deferred and your withdrawals are tax free when you use the money on qualified higher education expenses. In addition, you should ask about additional benefits. All college savings plans, for example, offer specific gift tax and estate tax benefits.