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 Friday, April 7, at the Statehouse to present the winners and second-place finishers in the Treasury Cup Challenge with their own VHEIP accounts -- $500 for each winning team member and $250 for the second-place […]
Kellogg Hubbard Public Library
135 Main Street, Montpelier, VT, United States
VHEIP will be part of the monthly News & Brews discussions hosted by VTDigger in April to share information on Vermont's 529 college savings plan with business owners and VTDigger readers. The Montpelier event on Monday, April 10, is being held at the Kellogg Public Library. Find out about the benefits, including the Vermont state […]
Richford Jr-Sr High School
1 Corliss Heights, Richford, VT, United States
VSAC will be at Richford Jr-Sr High School's first annual Community STEM Night on Tuesday, April 18, from 5:00-7:00 pm. to help students find out about college, and how they can get there. This evening program of student-led STEM displays includes a community meal and showcases how STEM-based learning is incorporated into students' learning and […]
Northern Vermont University @ Johnson
VT, United States
Are you the parent of a high school student? VSAC can help you plan for college -- for free! Thousands of Vermont students and parents have gotten a leg up on college planning through VSAC's College Pathways events. Get the same help they did, at one of our three events this spring. College Pathways covers the […]
Doubletree by Hilton Hotel & Conference Center
870 Williston Road, Burlington, VT, United States
VSAC and VHEIP representatives will be at the Vermont Chamber Business Expo on Thursday, May 25, at the Sheraton Burlington Hotel and Conference Center. Come and talk to us about how we can help your employees' families plan better, pay smarter and aim higher for college and career planning. VSAC will have information on Vermont's […]
VSAC to open college savings accounts for babies born on 529 Day Plus, all Vermonters can enter a drawing for $529 in college savings! Lucky babies born May 29 in Vermont will receive $100 deposit into Vermont's 529 college savings account, opened for the child by the Vermont Student Assistance Corp. The Vermont Association of […]
Trader Duke's Hotel
1117 Williston Road, South Burlington, VT, United States
VHEIP representatives will gather with Champlain Valley Head Start staff, partners, parents, and supporters for a day of professional development focused on serving Vermont's youngest children and their families on Friday, June 16. This multi-disciplinary opportunity for parents and professionals in social and government services as well as anyone involved in Early Care and Education […]
Vermont Lake Monsters
Centennial Field, 287 Colchester Ave., Burlington, VT, United States
VHEIP is excited to partner with the Vermont Lake Monsters for our second year to help you plan ahead for college. We're teaming up with CHAMP's Kids Club for a fun-filled summer, and welcome the support from the Burlington Moms Blog to help get the word out to Vermont families. Kids Club Days at the […]
Vermont Lake Monsters
Centennial Field, 287 Colchester Ave., Burlington, VT, United States
VHEIP is excited to partner with the Vermont Lake Monsters to help you plan ahead for college. We're teaming up with CHAMP and the Vermont Lake Monsters again for a fun-filled summer as we get the word out to Vermont families about saving for college. Outstanding Student Events at the Ballpark: As sponsor of the […]
Vermont Lake Monsters
Centennial Field, 287 Colchester Ave., Burlington, VT, United States
VHEIP is excited to partner with the Vermont Lake Monsters for our second year to help you plan ahead for college. We're teaming up with CHAMP's Kids Club for a fun-filled summer, and welcome the support from the Burlington Moms Blog to help get the word out to Vermont families. Kids Club Days at the […]
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.
