Best Virginia 529 College Savings Plan
Moneywise on July 13th, 2008
I recently reviewed a variety of 529 college savings plans for the state of Virginia. As a reminder (or intro) college 529 plans investment vehicles with tax benefits that are designed to promote investing for college costs of (usually) your children. The exact details of the 529 plan vary by state, but are generally offered as savings plans and prepaid credits (hedge against tution inflation).
In Virginia, there is a good variety of savings plans that offer an array of investment vehicles. After taking a look at the details of these plans I give the top spot to the Virginia Education Savings Trust. These plans are offered directly through the state, which helps to keep the expense ratio down. The total expense ratio lands somewhere between 0.3%-0.6%. You can invest in age based options as well as a fixed basket of mutual funds. The minimum initial contribution is only $25, which is also the same price as the application fee. Contributors may earn a $2,000 per year tax deduction.
Remember many state plans are available to those who reside in other states, but often your home state may offer significant benefits for its in-state residents, so review the plans in your home state first.
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