College America 529 Virginia plan

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Jobseeker2013
Posts: 81
Joined: Wed May 11, 2022 5:47 pm

College America 529 Virginia plan

Post by Jobseeker2013 »

I have the illinois target age index fund for my kids since I am a state resident. Their grandparents opened up a College America 529 Virginia plan. Their advisor said it was as good as Illinois's plan without the risk of bankruptcy since Virginia state government is better run than Illinois. I am thinking what? Illinois's plan is with Vanguard, so who cares if Illinois has a black swan event like bankruptcy. Does anyone know anything about the plan? What does it invest in? I know Morningstar gives it Bronze because the funds are good but the costs are high.
THY4373
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Joined: Thu Mar 22, 2012 3:17 pm

Re: College America 529 Virginia plan

Post by THY4373 »

College America is "available only through financial professionals, allows you to save tax free for qualified higher education expenses, including tuition, mandatory fees, certain room and board costs, textbooks, supplies, and equipment required by a college for a student's enrollment." As shown here: https://www.virginia529.com/invest/collegeamerica/.

So higher fees are not surprising. I have no idea if that plan is backed by the State or not.

I use the VA Invest529 plan which, when I researched was highly rated and I have been happy. It doesn't require you to use a financial advisor. The additional advantage of the Invest529 plan is that it allows you to take more than $4k in VA tax deductions each year as long as at least one of the following is different the beneficiary, custodian and investment type that is another $4k in VA state tax deductions.
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anon_investor
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Re: College America 529 Virginia plan

Post by anon_investor »

THY4373 wrote: Fri May 20, 2022 6:39 pm College America is "available only through financial professionals, allows you to save tax free for qualified higher education expenses, including tuition, mandatory fees, certain room and board costs, textbooks, supplies, and equipment required by a college for a student's enrollment." As shown here: https://www.virginia529.com/invest/collegeamerica/.

So higher fees are not surprising. I have no idea if that plan is backed by the State or not.

I use the VA Invest529 plan which, when I researched was highly rated and I have been happy. It doesn't require you to use a financial advisor. The additional advantage of the Invest529 plan is that it allows you to take more than $4k in VA tax deductions each year as long as at least one of the following is different the beneficiary, custodian and investment type that is another $4k in VA state tax deductions.
I have the VA Invest529 as well. It is great because it has low cost Vanguard index funds as investment options.
fabdog
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Location: Williamsburg VA

Re: College America 529 Virginia plan

Post by fabdog »

If the grandparents are VA residents then they get the tax deduction for contributions.

They'd be better off in the Invest 529 but if they are working thru a broker then the college America is what they get

While 529's are "sponsored" or authorized by states, they aren't guaranteed or backed by the states.

as occasionally happens with financial advisors, they gave their clients a bunch of hooey to justify something

Mike
Topic Author
Jobseeker2013
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Joined: Wed May 11, 2022 5:47 pm

Re: College America 529 Virginia plan

Post by Jobseeker2013 »

fabdog wrote: Fri May 20, 2022 7:52 pm If the grandparents are VA residents then they get the tax deduction for contributions.

They'd be better off in the Invest 529 but if they are working thru a broker then the college America is what they get

While 529's are "sponsored" or authorized by states, they aren't guaranteed or backed by the states.

as occasionally happens with financial advisors, they gave their clients a bunch of hooey to justify something

Mike
They are Florida residents so no state tax implications for them
Topic Author
Jobseeker2013
Posts: 81
Joined: Wed May 11, 2022 5:47 pm

Re: College America 529 Virginia plan

Post by Jobseeker2013 »

The advisor recommended the CollegeAmerica for the exact reason to me despite I being an Illinois resident
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