Four types of Virginia 529 college savings plans are available. These four plans are the Virginia Education Savings Trust (VEST), Virginia Prepaid Education Program (VPEP), CollegeAmerica (which is available through financial advisors) and CollegeWealth (soon to be available).
The benefits to using a Virginia College Savings Plan is that since there are four different types of plans available, there are more options for more individuals. There is a wide array of investment options under these plans. Also, distributions from VPEP as well as the other 529 plans can be used at accredited educational institutions all around the country and world.
It is important to compare all four plans before choosing what is best for you. The VPEP program covers all mandatory fees and in-state undergraduate tuition costs. The VEST program covers room and board, textbooks, other necessary supplies and fees and tuition. The CollegeWealth program covers room and board, fees, tuition, textbook and mandatory supplies. Finally, the CollegeAmerica program covers room and board, fees, tuition, and textbooks and supplies. The programs differ by tax advantages, existence of a guarantee, age restrictions, residency requirements and other factors.
Virginia 529 plans can also be used to cover graduate school costs. Account contributions grow tax-free, and withdrawals are tax-free as well - as long as they are taken out to pay for higher education costs (such as graduate school). Virginia has a state deduction of a maximum of $2,000 annually with unlimited carryforward until all of the contributions have been taken out.
It is very easy to apply for the Virginia 529 Plan. By using the official website for the plan, Virginia529.com, users can apply online with an electronic signature, email to request an enrollment kit, or even telephone to request an enrollment kit. If you request kits via Internet or telephone, they will be mailed to your address as soon as possible.