Virginia’s tax-advantaged college savings plan for parents and their children has surpassed $100 billion in assets under management, making it the first 529 plan in the industry to reach that milestone.
Virginia529 is the largest 529 plan in the country. It has nearly 3 million accounts, and the number of college savings accounts in its portfolio has grown by 12% in the past year.
“We are honored that even in a time of unprecedented challenges and uncertainty, millions of families continue to trust us with their savings and their higher education goals,” said Mary Morris, Virginia529 chief executive.
Capital Group, one of the largest mutual fund companies in the U.S., has offered its CollegeAmerica program through Virginia529 since 2002.
In February, VIrginia529 launched a new savings option called the Tuition Track Portfolio offering more flexible investment options that keep track with rising tuition costs.
Savings from 529 accounts can be used for tuition at private and public colleges and universities as well as tuition costs at private K-12 schools, up to $10,000 per child per year. Funds invested in 529 plans are made with after-tax money, but it grows tax-free and withdrawals are not taxed.