RIch Westman and Deborah Unica of VSAC, sponsor of Vermont's official 529 college savings plan, will hold workshops for employees at Dynapower in South Burlington on Monday morning, 2/8/16. To schedule a VSAC presentation on saving or paying for college, e-mail events@vsac.org.
This is the first of VSAC's College Pathways events for 2016, offering FREE workshops to help families navigate the college search process and financial aid, at three locations across the state: Saturday, March 19 at Saint Michael’s College in Colchester, 9:30 a.m. to 2:45 p.m. (lunch provided) Saturday, April 2 at Castleton University in Castleton, […]
Castleton University
62 Alumni Dr, Castleton, VT, VT, United States
This is the second of VSAC's College Pathways events for 2016, offering FREE workshops to help families navigate the college search process and financial aid, at three locations across the state: Saturday, March 19 at Saint Michael’s College in Colchester, 9:30 a.m. to 2:45 p.m. (lunch provided) Saturday, April 2 at Castleton University in Castleton, […]
NVU-Lyndon
1001 College Rd, Lyndonville, VT, VT, United States
This is the final site of VSAC's College Pathways events for 2016, offering FREE workshops to help families navigate the college search process and financial aid, at three locations across the state: Saturday, March 19 at Saint Michael’s College in Colchester, 9:30 a.m. to 2:45 p.m. (lunch provided) Saturday, April 2 at Castleton University in […]
During the month of May, in honor of National 529 Day (5-29; get it?), any Vermont resident or VHEIP account owner can enter a drawing for a chance at a $529 deposit in a new or existing VHEIP account. Sign up to enter the drawing, and you'll also receive college planning info to help you prepare for college […]
Windham Regional Career Center
80 Atwood Street, Brattleboro
VHEIP will hold a Saving for College presentation for Windham South East Supervisory Union teachers on May 16 at Windham Regional Career Center. All teachers are encouraged to attend to find out about the benefits, including the Vermont state income tax credit, that VHEIP offers to Vermont families as they save for their children's college […]
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 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 Outstanding […]
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'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 Ballpark: Come and get […]
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'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 Ballpark: Come and get […]
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'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 Ballpark: Come and get […]
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.
