VHEIP will be part of the annual benefit day CORE (Connecting Our Resources Effectively) event for employees at VELCO on Thursday, October 12, explaining college planning and VSAC services to Vermont families, including the advantages provided to Vermonters who use the Vermont 529 college savings plan. Find out about the benefits, including the Vermont state […]
UVM Medical Center
Davis Concourse, UVM Medical Center, Burlington, VT
VHEIP is joining the UVM Medical Center for their Financial Wellness Campaign of "Know Your Finances," open to UVM employees and the public. The event will be held in the area outside the Davis Auditorium. VSAC will provide the details of Vermont’s 529 college savings plan, so families can find out about the benefits, including […]
VHEIP will be at the fall Open House for parents and students at Cambridge Elementary School on Tuesday, October 17th from 6:00 to 7:00 pm to give away free string backpacks (and piggy banks) and speak with parents about how they can save and pay for college. Be sure to stop by and enter our drawing […]
Albany Community School
351 Main Street, Albany, VT
VHEIP will be at the fall Open House for parents and students at Albany Community School on Wednesday, October 25 from 5:30 to 6:30, followed by a Harvest Dinner from 6:30 to 7:30. We'll be giving away free backpacks and speaking with parents about how they can save and pay for college. Be sure to […]
Eden Central School
140 Knowles Flat Road, Eden, VT
VHEIP will be at the open house at the Eden Central School on Thursday, October 26, to give away free backpacks and speak with parents about how they can save for college. Be sure to stop by and enter our drawing for $50 in a Vermont 529 college savings account! Find out about the benefits, including […]
VHEIP will be part of the Benefit Fair for State of Vermont employees in the Asa Bloomer Building, Merchant's Row, Rutland on Thursday, November 2, from 9:00 to 1:00. VSAC will provide the details of Vermont’s 529 college savings plan, so families can find out about the benefits, including the Vermont state income tax credit, […]
VHEIP will be part of the Benefit Fair for State of Vermont employees in the 2nd floor conference room of the John J. Zampieri State Office Building in Burlington on Friday, November 3, from 9:00 to 3:00. VSAC will provide the details of Vermont’s 529 college savings plan, so families can find out about the […]
Waterbury -- State Employee Benefit Fair
280 State Drive Center Building, Waterbury
VHEIP will be part of the Benefit Fair for State of Vermont employees in Waterbury on Monday, November 6 from 9:00 to 3:00. VSAC will provide the details of Vermont’s 529 college savings plan, so families can find out about the benefits, including the Vermont state income tax credit, that VHEIP offers to Vermonters as […]
VHEIP will be part of the Benefit Fair for State of Vermont employees in Montpelier on Tuesday, November 7 from 9:00 to 3:00. VSAC will provide the details of Vermont’s 529 college savings plan, so families can find out about the benefits, including the Vermont state income tax credit, that VHEIP offers to Vermonters as […]
Oak Grove School
15 Moreland Avenue, Brattleboro, VT
VHEIP will be at the fall Open House for parents and students at Oak Grove School in Brattleboro on Thursday, November 16 from 5:30 to 7:00 pm to give away free piggy banks or backpacks and speak with parents about how they can save and pay for college. Be sure to stop by as you […]
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.
