Save today for a brighter tomorrow.

Transcription

1 Save today for a brighter tomorrow.

2 Why save for college? It s no secret, education pays. Studies show that college graduates can earn substantially more throughout their careers than their counterparts with high school diplomas. However, college tuition continues to rise each year how do you plan to pay for it? Scholarships and grants are limited and loans can saddle you or your child with substantial debt. Start saving now using Virginia529 SM and let time and planning work to your advantage. What is a 529 Plan? Named after Section 529 of the Internal Revenue Code, which provides federal tax advantages for certain college savings plans, 529 plans can help you plan and save for future qualified higher education expenses. There are two basic 529 plan types prepaid tuition programs and savings programs. Why choose a 529 Plan? High contribution limits A variety of investment options Tax advantages No income limitations Compare 529 plans to alternatives such as Coverdell Education Savings Accounts, insurance and Roth IRA s we think you will agree a 529 plan is the best plan! Why Virginia529? Virginia529 offers four flexible programs with numerous advantages, for Virginia residents and those living outside of the state. Nation s largest 529 plan with over 2 million accounts Highly ranked by Morningstar and Savingforcollege.com Up to a $4,000 state tax deduction for Virginia individual taxpayers Low minimum contributions - get started with as little as $25 A variety of investment options for different risk tolerances Generous balance limits - $350,000 per beneficiary across all four programs

3 Virginia529 offers four tax Multiple investment options to suit your needs Prepay today for tomorrow s college tuition expense 16 investment portfolios, offering professional investment management Designed to meet a variety of investment objectives, risk tolerances and college savings time horizons No state residency or age requirements May be used for any qualified higher education expense, including tuition, room and board, books, required supplies and equipment Can be used at eligible educational institutions worldwide Among the lowest fees in the country Prepay full coverage of future in-state undergraduate Virginia public college or university tuition and mandatory fees Available for newborns through ninth graders during limited annual enrollment period Two purchase options: Tier I designed for Virginia public four-year colleges and Tier II designed for Virginia two-year or community colleges Payments can be made in lump sum or convenient installments Can be used at any eligible educational institution throughout Virginia, the United States and the world, but when used at private or out of state schools, benefits may not cover full tuition and fees

4 -advantaged programs. CollegeWealth CollegeAmerica Security of FDIC-insured savings in addition to 529 plan benefits Investment options available through financial advisers High-yield savings accounts offered in partnership with BB&T and Union First Market Bank Competitive interest tiers based on account balance No annual fee or minimum balance requirements No state residency or age requirements May be used for any qualified higher education expense, including tuition, room and board, books, required supplies and equipment Can be used at eligible educational institutions worldwide Offered in partnership with one of the nation s largest mutual fund families, American Funds Choose from a variety of investment funds that best suit your needs Work with a financial adviser and still benefit from the same tax advantages as other 529 accounts No state residency or age requirements May be used for any qualified higher education expense, including tuition, room and board, books, required supplies and equipment Can be used at eligible educational institutions worldwide

5 The TRUTH About 529 s If I have a Virginia529 account, my child can only go to school in Virginia, right? FALSE All Virginia529 accounts can be used at any eligible educational institution around the country or the world! That s great but what if my high school student wants to go to a private school, I m stuck, right? It s too late for me to get started anyway. WRONG Virginia529 accounts can be used at any school, public or private, and are not limited to younger children. Only Virginia529 prepaid has age limitations; the remaining programs can be opened at any time, for anyone, even adults! Wow sounds great, but still must be too good to be true. What if my child doesn t go to college? FLEXIBLE Virginia529 accounts can be transferred to any member of the family without recognition of income or penalty. They also can be used at graduate schools and for many types of training programs! Regardless of the reason, money you invest is ALWAYS yours and available for withdrawal if needed, although there may be tax consequences if not used for qualified higher education expenses. Ok, ok sounds great for my family. But how does this impact my taxes? TAX-ADVANTAGED While helping a loved one reach their educational goals, earnings grow free from state and federal taxes and are never taxed when used for qualified higher education expenses. Plus account owners may deduct up to $4,000 per account per year from their Virginia state individual income taxes. What about my family members living outside of the state? Can they participate? GIVE A GIFT! Absolutely! Any legal U.S. resident can open, contribute to or be the beneficiary of a Virginia529 account. Virginia529 is the ideal way for family including grandparents and friends to give the gift of an education to a child.

6 Start your college savings with these 3 easy steps! Learn more about the four college savings programs Virginia529 offers by reading the complete prepaid and/or invest Program Descriptions and sections on CollegeWealth and CollegeAmerica, available at Virginia529.com. Decide which program(s) will work best for you. Gather information you will need to open an account, including the name, address and Social Security number of the account owner, beneficiary and designated survivor and the date of birth of the beneficiary, along with banking information if you wish to contribute to your account using automatic bank debits. Create your online user profile at Virginia529.com. Then open an account and start saving immediately with Virginia529 invest SM, Virginia529 prepaid SM (during open enrollment) and CollegeWealth. Information on how to start your savings with CollegeAmerica is also available at Virginia529.com. Virginia529.com Toll free This brochure contains general information about the Virginia529 College Savings Plan s four programs. Prospective participants are urged to obtain and read the enrollment materials carefully before investing, including the information concerning applicable fees and expenses. The Virginia529 College Savings Plan encourages prospective participants to seek the advice of a professional concerning any financial, tax or legal implications related to opening an account. For residents of states other than Virginia: your state or the beneficiary s state of residence (if different) may sponsor a 529 plan that offers state income tax and other benefits not available to you through the Virginia529 College Savings Plan Virginia College Savings Plan. All Rights Reserved.