![]() In addition, withdrawals from the plan are also tax-free when you use them on qualified higher education expenses. All account holders can contribute toward the plan knowing their investment will grow tax-exempt, and it can take advantage of compound interest. Virginia tax payers who open an account with Invest529 can deduct up to $4,000 from their state taxable income. This estimate assumes a 5% compound annualized rate of return and a constant total asset-based fee throughout that time span. ![]() If you invest $10,000 in a portfolio with a high-end total annual asset-based fee of 0.77%, your fees would amount to just $80 in a year. It’s indirectly factored out of total assets in portfolios and underlying mutual funds, so your account bears a pro-rata share based on your portfolio option or options. The total fee isn’t charged directly out of your pocket. How Much Does the Invest529 Plan Cost?Įach portfolio option in the Virginia Invest529 plan charges a total annual asset-based fee between 0.10% and 0.62%, a palatable range that makes the plan stand out for its low fees. In addition, you’d need to select your investment option at time of enrollment. You can also fill out a paper application, but online enrollment is the quickest and easiest way to open an account as you need to pay a $50 application fee for the paper version.
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