NVU-Lyndon
1001 College Rd, Lyndonville, VT, VT, United States
We regret to announce that this in-person event has been canceled. Online format coming soon! Read the update here. Are you the parent of a high school student? An adult learner returning to education? A student of any age wondering about your next steps ... and how to pay for it? VSAC can help you […]
Vermont Statehouse
Pavilion Auditorium, Montpelier, VT, United States
VSAC, the state sponsor of VHEIP, is excited to be joining in to celebrate Financial Literacy Month in Vermont on Thursday, April 9, at the Statehouse. Treasurer Beth Pearce will host the annual Financial Literacy Awards ceremony in Montpelier to recognize student achievement, including the Reading is an Investment program. Among the more than 5,500 […]
Grand Summit Resort at Mount Snow
21 Grand Summit Way, West Dover, VT, United States
VSAC and VHEIP representatives will be at the 4th annual Southern Vermont Economy Summit on Thursday, May 28, at the Grand Summit Resort at Mount Snow in Dover. The daylong event will highlight projects with innovative and unique partnerships, strategies for growing the regional economy, and insight into how other regions are working to improve […]
Doubletree by Hilton Hotel & Conference Center
870 Williston Road, Burlington, VT, United States
CANCELED Hosted by Champlain Valley Head Start, this event is open to staff, partners, parents, and supporters for a day of professional development focused on serving Vermont's youngest children and their families. The summit will be rescheduled to a future date. Info at vermontheadstart.org/event/early-care-and-education-child-health-and-safety-summit-free-training/ VSAC has information on Vermont's 529 savings plan, as well as […]
VSAC provides virtual workshops, webinars, and digital resources for college and career planning, right at your fingertips. Go to vsac.org to find information on college preparation and career training, career exploration, financial aid information (scholarships, grants, and loans), and so much more.
Do you need help filing your FAFSA and/or other financial aid forms? We have counselors available to assist you. Click here for more information and to schedule a one-on-one meeting.
In the next VSAC Shows You How webinar, simulcast to Facebook on Nov. 18, from 6-7 p.m., VSAC walks you through how to complete the Vermont State Grant application, question by question. We’ll also show you how to apply for any of the 120+ VSAC-assisted scholarships. Last year, VSAC administered $19 million in grants for […]
Do you have a student applying to college or training? Or are you considering a return to learning? December is the month most students make decisions about where to apply and line up financial aid, and VSAC is here to help. As Vermont's nonprofit higher education agency, we've planned a month-long initiative to help students […]
High school students and parents, whether you’re college-bound, training-bound or not sure, this online resource and month-long virtual event is for you. Throughout March, VSAC is offering live virtual workshops and is partnering with Vermont colleges and training programs to host live virtual tours and info sessions. Go to vsac.org to register and learn more. […]
An initiative to help students and families prepare for life after high school and keep as many doors open as possible. Are you about to graduate high school and would like to go to college or a training program in the fall, but still need to apply? Maybe you’ve applied to a few schools, but […]
Checks should be made payable to the Vermont Higher Education Investment Plan.
Contributions by check must be drawn on a banking institution located in the United States in U.S. dollars.
You may contribute to VHEIP using:
personal checks (excluding starter checks and cashier’s checks), bank drafts, or teller’s checks.
checks issued by a financial institution or brokerage firm made payable to the account owner or the beneficiary and endorsed over to VHEIP by the account owner.
a third-party personal check up to $10,000 that is endorsed over to VHEIP.
Contributions by check should be accompanied by a completed Additional Contribution by Mail Form or should include reference the VHEIP account number(s) to which the contribution should be applied.
As Vermont’s official 529 college savings plan, VHEIP is the only 529 plan that qualifies for a Vermont state income tax credit.
A state income tax credit of 10% of the first $2,500 contributed to VHEIP per beneficiaryper tax year is available to any Vermont taxpayer (or, in the case of a married couple filing jointly, each spouse) – that’s a credit of up to $250 on annual contributions per beneficiary per account owner ($500 per beneficiary for married couples filing jointly).
Rollovers from another state’s 529 plan into VHEIP are also eligible for the 10% tax credit on the contributions portion of the rollover (not on the earnings). The funds must remain in VHEIP for the remainder of the taxable year in which the funds were rolled in.
Who is considered a family member of a 529 beneficiary?
A qualifying family member includes any siblings or step-siblings, natural or legally adopted children, stepchildren, parents or ancestors of parents, step-parents, first cousins, nieces or nephews, and aunts or uncles. In addition, the spouse of the beneficiary or the spouse of any of those listed above also qualifies as a family member of the beneficiary.
Qualified higher education expenses include tuition, fees, and the cost of books, supplies, and equipment required for the enrollment and attendance of the beneficiary at an eligible educational institution, and certain room and board expenses. Qualified higher education expenses also include certain additional enrollment and attendant costs of a beneficiary who is a special needs beneficiary in connection with the beneficiary’s enrollment or attendance at an eligible institution. For this purpose, an eligible educational institution generally includes accredited postsecondary educational institutions offering credit toward a bachelor’s degree, an associate’s degree, a graduate-level degree or professional degree, or another recognized postsecondary credential.
A non-qualified withdrawal is any withdrawal that does not meet the requirements of being: (1) a qualified withdrawal; (2) a taxable withdrawal; or (3) a rollover. The earnings portion of a non-qualified withdrawal may be subject to federal income taxation, and the additional tax. Recapture provisions apply. See the Disclosure Booklet for details.
Eligible education institutions are accredited, post-secondary educational institutions offering credit towards a bachelor’s degree, an associate’s degree, a graduate level or professional degree, or another recognized post-secondary credential. Use the Federal School Code Search on the Free Application for Federal Student Aid (FAFSA) website or contact your school to determine if it qualifies as an eligible educational institution. 529 Plan assets can also be used at some accredited foreign schools. If you have a question, contact your school to determine if it qualifies.
The federal tax act of 2017, signed into law in December 2017, includes provisions related to 529 plan accounts, beginning with the 2018 tax year:
529 withdrawals may be used to pay for qualified K-12 expenses for elementary or secondary public, private or religious schools effective January 1, 2018. These K-12 withdrawals are limited to $10,000 per student per year and apply to tuition expenses only. Withdrawals up to $10,000 per year per beneficiary for K-12 tuition expenses are not subject to federal tax, but the earnings on those withdrawals over $10,000 would be subject to federal tax.
The Vermont 529 plan statute is written differently, however, and may impose negative Vermont income tax consequences on withdrawals for K-12 tuition. Therefore, for account owners who took the Vermont income tax credit on contributions to their 529 plan, amounts withdrawn for K-12 tuition expenses may be subject to a 10% recapture penalty on those withdrawals, and Vermont may impose tax on the gain realized with respect to the withdrawals.
VSAC, as administrator of the Vermont 529 plan, will provide information as details about the Vermont income tax effects are clarified. We encourage you to consult a qualified tax advisor or the Vermont Department of Taxes at tax.vermont.gov concerning federal and state tax implications for tax years 2018 and beyond, and to save documentation for how all VT 529 fund withdrawals are used.
