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The Virginia College Savings Plan offers four section 529 investment options: The Virginia Prepaid Education Program, The Virginia Education Savings Trust , CollegeAmerica and CollegeWealth.

The Virginia Prepaid Education Program (VPEP) locks in future college costs at Virginia public colleges for children in the ninth grade or younger. VPEP covers full tuition and mandatory fees and the investment is backed by a statutory guarantee. VPEP can also be used at any accredited college in the country eligible to accept federal financial aid.

The Virginia Education Savings Trust (VEST) offers a choice of 11 investment funds. Students of all ages can participate regardless of where they reside. VEST covers all major college expenses including tuition, fees, room and board, textbooks, required computers and supplies.

CollegeAmerica is offered through the American Funds, one of the oldest and largest mutual fund companies in the country and is available to all 50 states. CollegeAmerica offers 22 American Funds that fits every participant's financial plan, time horizon and tolerance for risk. With CollegeAmerica, you can save for all major college expenses. Ask your financial advisor for information about CollegeAmerica.

CollegeWealth is Virginia's FDIC-insured 529 savings program. This program partners with BB&T and Union First Market banks. Families can open a savings account for their children's or their own higher education. The accounts are subject to regular FDIC insurance rules.

All account owners who have Virginia taxable income and file Virginia income tax returns can deduct from their taxable income up to $4,000 per year per account or the amount contributed during the year, whichever is less, with unlimited carryforward until all contributions to the account have been deducted. If the funds are not used for higher education expenses the contributor must add the deducted amounts back to income for state income tax purposes. Exceptions to this recapture rule include refunds as a result of death, disability, or receipt of a scholarship. Account owners age 70 or above are not subject to the $4,000 cap and may subtract the entire amount paid during the year.

The Virginia state tax advantages are only available for investments in Virginia's Section 529 programs: VPEP, VEST and CollegeAmerica.

For more information visit www.Virginia529.com.

Note: Taxpayers should be aware that gifts to 529 plans are part of annual gifting limitations to individuals. For 2010, the annual gift exclusion is $13,000. Gifts in excess of this amount require the taxpayer to file a federal gift tax return. Please consult your tax advisor for more information on gift tax returns.