Must use for qualified higher education expenses by the time the beneficiary reaches age 30. 500 per designated beneficiary under 18.
Qualified distributions are exempt from federal income tax.
Amounts contributed are removed from the donor's gross estate but included in the beneficiary's gross estate. All IRC Section 529 Qualified Education Expenses - tuition, fees, room and board, books and equipment at eligible educational insititutions anywhere in the country. Earnings grow federal tax deferred. Earnings taxed to beneficiary at usually lower rate. Virginia income tax deduction for purchaser and exemption on earnings for beneficiary.