Search

Using Virginia 529 Plans for Private School Tuition

For many parents, investing in your children and their education is the best money you can spend. In the era of Covid-19 this may be truer than ever. As a financial planner, my goal is to help parents manage and reduce educational costs by making wise investment and tax-planning decisions.


In today’s post I share an article I recently wrote in the Fairfax Times on utilizing Virginia 529 plans for private school tuition.


Recent tax law changes have afforded parents in Virginia excellent benefits in saving and spending for private school and higher education costs. Specifically, parents are now able to distribute up to $10,000/year from 529 plans for qualified private school tuition. This can provide immediate benefits such as:

Tax Deductibility


Each year you can contribute and deduct up to $4,000 in contributions to Virginia 529 plans for Virginia state tax purposes. You can contribute more than this amount, but your deduction is limited for the current year.

Maximize Benefits


Each parent can create their own 529 plan for the benefit of their child. This allows each parent to contribute $4,000. In total, two parents can contribute $8,000 for one child and receive a Virginia state deduction.

Replenish Funds


If you choose to use 529 plans before college, you likely will want to replenish those balances. However, if you have a plan that may be over-funded or may not be fully utilized due to scholarships, this can be a reasonable approach to utilize those resources in a tax-friendly manner.


All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.


GuidePoint Financial Planning - Northern Va Financial Planning


Ryan Phillips, CFP® is the founder of GuidePoint Financial Planning. He is passionate about helping busy families plan, save, and invest for their financial future. Contact him today if you are interested in learning more about the benefits of working with a fee-only (no-commission) financial planner.



18 views

Are We on track?

Click on our free retirement or goal planning calculator to see how you are doing.  Let us know if you have any questions.    

GuidePoint Financial Planning

12020 Sunrise Valley Drive

Suite 100

Reston, Va. 20191

(703) 489-8925

© 2020 GuidePoint Financial Planning. All Rights Reserved.