Please forward this error screen to 69. How Does the Virginia 529 Education Savings Plan Work? 529 the deduction for the child’s education in 2017 plans were put into place to help families pay for college or post-secondary tuition.
All earnings from a 529 account are not taxed as income and contributors can even get a valuable tax deduction for utilizing the plan. If enough money is saved through this vehicle, there is less stress at admissions time about applying for financial aid or searching for scholarships. You pay no income tax as your contributions grow and no income tax when you use the funds for the beneficiary’s qualified higher education expenses. The 529 can be withdrawn to pay for tuition, room and board and other education expenses, such as textbooks or supplies. Through these tax-deductible plans, family members and friends can contribute to a child’s college fund, and get a tax benefit for doing so. Over the years, with regular contributions and compound interest, the plan can grow significantly to provide for the child’s educational expenses. Virginia 529 Invest: This plan is offered directly from the state.