West Virginia 529 Plan Rules And College Savings Options
West Virginia has a 529 plan called Smart529 that can help you save for college. West Virginia also has a 529 Able Plan as well.
If you live in West Virginia, these might be good options for you to save for college.
These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.
If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?
There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of West Virginia. Each state has different rules when it comes to 529 plan savings. Here are the West Virginia 529 plan rules.
Average Cost Of College In West Virginia
When saving for college in West Virginia, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.
There are 68 colleges and universities in the State of West Virginia.
The total average cost of college (Cost of Attendance) in West Virginia for in-state residents is $17,640 for 2023. This includes tuition, room and board, books and supplies, and other expenses.
For just tuition alone, the average undergraduate tuition for in-state residents is $5,847 for 2023. The cost of tuition in West Virginia has been rising at about 1% per year.
See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.
Explore the data here.
West Virginia 529 Plan Rules And Tax Information
Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free.
Here are the special tax benefits and considerations for using a 529 plan in West Virginia.
Contributions
West Virginia offers a state tax deduction for all contributions to a West Virginia 529 plan - no limit.
Minimum: There is no minimum contribution.
Maximum: Accepts contributions until all account balances for the same beneficiary reach $550,000.
Matching Contributions: The Bright Babies Program provides a $100 grant to a West Virginia 529 plan if the account is opened within 1 year of birth or adoption.
Rollovers
West Virginia follows federal tax treatment.
Outbound rollovers are no subject to recapture.
Qualified Distributions
Qualified distributions from a West Virginia and non-West Virginia 529 plan are tax-free.
K-12 Education
West Virginia does conform with Federal law in regard to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.
Student Loans
West Virginia does conform with Federal law for using a 529 plan for student loans.
Rollover To Roth IRA
West Virginia does allow the rollover to a Roth IRA up to $35,000. Learn more about the 529 plan to Roth IRA rollover here.
Non-Qualified Distributions Taxes, Penalties, Recapture
A non-qualified withdrawal from a West Virginia 529 plan is subject to taxes on the full amount to recapture prior tax deductions.
West Virginia 529 College Savings Plan Options
West Virginia has several 529 plan options - two consumer plans and one plan that is sold by financial advisors (we're big advocates of doing-it-yourself, you don't need to pay a financial advisor for this). They also have an old pre-paid tuition program that is no longer taking new enrollment.
West Virginia Smart529 Plan
The Smart529 Plan is the name of one of West Virginia's 529 Plan. This plan is offered to residents only, but it's a solid choice.
This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include Vanguard.
Fees:
There is a program management fee of 0.08%.
The underlying funds all charge expense ratios from 0.04% to 0.13% depending on the investment option.
Who Should Use It:
We recommend that West Virginia residents use the West Virginia Smart529 plan due to the tax benefits, low fees, and plan investment options.
Out-of-state residents cannot use this plan.
West Virginia Smart529 Select Plan
The Smart529 Select Plan is the name of one of West Virginia's 529 Plan. This plan is offered to residents and non-residents.
This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include DFA.
Fees:
There is a program management fee of 0.40%.
There is also a maintenance fee of $25 per year, but that's waived for West Virginia residents and those with accounts of $25,000.
The underlying funds all charge expense ratios from 0.17% to 0.27% depending on the investment option.
Who Should Use It:
We recommend that West Virginia residents look at other plan options due to the higher costs. The regular Smart529 plan will likely be a better bet.
We recommend that out-of-state residents use another plan.
West Virginia 529 Able Plan Options
529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here.
WV ABLE
The WV ABLE Plan is a 529A plan open to all residents in West Virginia.
This plan allows contributions of up to $18,000 per year from all sources.
It does have a minimum initial contribution amount of $50 per account. The minimum subsequent contribution amount is $1.
The plan does have an account maintenance fee of $42 annually, assessed at $3.50 per month. It also has a program management fee of 0.19%.
You can open an WV Able Plan here.
Other Programs To Save For College
A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.
If you're looking for ways to boost your college savings, check this out:
Backer
Backer is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.
Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.
Upromise
Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.
West Virginia Financial Aid
Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.
Check out the list of West Virginia Student Loan and Financial Aid Programs.
Return to the full list of 529 Plans By State.
Editor: Clint Proctor Reviewed by: Ashley Barnett
