College 529 Plan Investments Increase in Virginia

Virginia families are saving more for their children’s college education via the state’s 529 tax-free savings programs.

There was a 13 percent increase over the amount families saved for college the previous year, according to Virginia529, the agency overseeing the commonwealth’s program named after the Internal Revenue Service tax code that makes earnings in the accounts tax-free.

About $479 million was invested during fiscal year 2013 in three Virginia529 programs, up from $424 million the prior year. 

The agency said improving economic conditions and growing concern over rising student loan debt contributed to the increase.

The agency also distributed about $250 million in fiscal 2013, which was also an increase of about 13 percent. 

About half of the distributions went to Virginia public schools. Virginia Tech received $24.3 million, University of Virginia received $20 million and James Madison reaped $13.5 million. Virginia Commonwealth University and the College of Wiliam and Mary came in fourth and fifth, respectively.

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