Fredericksburg Parent

30 Fredericksburg Parent and Family • May 2025 family money WRITTEN BY NIKKI DUCAS How did we get here? Back in 2015 when my teen and tween were just six and two years old, my husband and I were already questioning how we were going to afford to send our sons to college. We chose Virginia529 inVEST and started setting aside money for each of them monthly. It gives great peace of mind knowing that funding college is attainable if you start early and contribute consistently. It's not that daunting. The Saving for College Web site (savingforcollege.com) details step-by-step processes of setting up a 529 plan to guide families to get their savings for college on the right track. GETTING STARTED – Find a 529 in your state. Since I am a resident of Virginia, I chose a VA529 plan. However, if you are a military family and your primary residence is in a state without income tax – Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming – you may want to enroll in another state's 529 plan since you would not take a state income tax deduction. RESEARCH PLANS – Visit Virginia529 (www.virginia529.com) to find a plan that fits your lifestyle. • InVest529 offers an easy and convenient way to save for future education expenses while also saving on your taxes. InVest529 can help ease your mind and help prepare you for the future. • CollegeAmerica is a commonwealth savers partnership with Capital Group, home of American Funds, one of the oldest and largest mutual funds in the country. Unlike other 529 plans, CollegeAmerica offers the unique opportunity to choose from a variety of American Funds. It is only available through financial professionals and offers tax-free savings for qualified higher education expenses as well as for tuition at private or religious K-12 schools. • Virginia's CollegeWealth accounts in the InVest529 portfolio earn an industry-leading 4.40%. Both InVest529 and CollegeWealth accounts offer FDIC insurance and the same 529 tax benefits. • Virginia also offers prepaid college plans. The earnings on your investment are typically exempt from Federal Income Tax and in many cases, state income taxes. This makes prepaid tuition plans a tax-efficient way to save for college. For parents who want certainty for their child's college expenses, prepaid tuition plans offer peace of mind and there are many great state colleges and universities in Virginia that these prepaid plans can be utilized at. CHOOSE A PLAN RIGHT FOR YOUR FAMILY – We chose Virginia529 inVEST (now called Invest529 after being rebranded in 2024) because at the time we could not put aside $5000 a year for a prepaid tuition program, and we didn't have a financial advisor. This plan continues to allow us to save what we can each month. Invest529 accounts grow tax-deferred and are tax- free on federal withdrawals used for qualified higher education expenses, not just those in Virginia. May 29 is celebrated nationwide as 529 College Savings Day, to raise awareness about the importance of saving for higher education and the tax advantages of 529 plans. Set Aside a Small Amount of Money to Make Funding College More TODAY ATTAINABLE

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