Virginia 529 has a new giveaway to boost your college savings: contribute $250 to a Tuition Track portfolio by June 30th, 2023, and Virginia 529 will kick in another $100!
Unlike the recent giveaway in May, the June offer has a state residency requirement. To open a Tuition Track account, either the account owner or the beneficiary must be a resident of Virginia.
What is Virginia 529's Tuition Track?
Virginia 529's Tuition Track is an investment that tracks the average of tuition and fees at public universities in Virginia. It's designed to help families save for future college expenses at today's prices, effectively protecting against tuition inflation. Tuition Track offers peace of mind by locking in tuition rates, providing security and predictability for your college savings. Units of Tuition Track are currently priced at $145, but that price will likely change on July 1st.
Contributions to the tuition track "cure" over three years. Funds withdrawn earlier than three years don't qualify for any earnings and you'll simply get what you contributed originally. If you do withdraw early, you'll still qualify for the $100 match since it's not considered earnings.
Learn more about the Tuition Track account, here.
As a side-note, last year I predicted a 1.39% unit price increase, taking the per-unit price from $138.84 (2021-2022) to $140.77. My prediction was embarrassingly wrong. The unit price instead jumped 4.44% to $145.00. One failed prediction and I'm ready to throw in the towel on prediction. ☺
What if my student doesn't attend a school in Virginia?
The Tuition Track account may be restricted to Virginia residents, but its use isn't limited to Virginia schools. You can use the 529 for most public and private schools across the country and even at some international schools. I regularly use my Virginia529 accounts to pay school-related expenses for my two daughters who are both attending a private university in Utah, Brigham Young University.
How many times can I use this offer?
According to the terms and conditions, Virginia 529 will contribute $100 for each account owner/beneficiary combo. Both you and your spouse can open Tuition Track accounts for every student beneficiary that is under the age of 18. Contributing to existing accounts also qualifies.
Last June, my wife and I opened 10 Tuition Track accounts for a different Tuition Track giveaway. By again contributing $250 to each account for a total of $2,500, we'll qualify for $1,000 of matching contributions.
Will I be taxed on the matching contribution?
You will need to report the matching contributions as miscellaneous income when filing your taxes. Last year Virginia 529 sent both my wife and I 1099-Misc forms to report our "winnings" from Virginia 529 in 2022.
How to Get Started:
Taking advantage of Virginia 529's $100 bonus contribution to a Tuition Track account is simple. Just follow these steps:
- Visit the Virginia 529 website and explore the Tuition Track program details.
- Open a new Tuition Track account online.
- Make a one-time $250 contribution to your Tuition Track account by June 30th, 2023.
- Enjoy the peace of mind and excitement of watching your college savings grow!
Conclusion
Virginia 529's Tuition Track program provides an excellent opportunity to save for your child's college education while enjoying the added benefit of a $100 bonus. By enrolling in Tuition Track, you can protect against tuition inflation, ensure flexibility in college choices, and create a solid financial plan for the future.
If either you or your beneficiary are Virginia residents, don't miss out on the free $100 limited-time offer!
Offer details can be found here