VSAC, state administrator of the VHEIP program, is pleased to offer Gift of College gift cards in $50 amounts at the Vermont locations of Cumberland Farms stores. Gift of College gift cards are a great way to get a recipient started with college savings and provide a meaningful way to acknowledge a birth or adoption, celebrate a birthday or other milestone, or give as a gift for the education of a future student.
Redeeming a Gift of College gift card? Here’s how:
If you do not already have an existing 529 account, you’ll first need to set up a 529 account into which to deposit the Gift of College funds. Click below to open an account with Vermont’s 529 college savings plan.
Already have a VHEIP account? Register and create a profile at the Gift of College website to redeem your card.
Steps to redeem:
- Have your VHEIP beneficiary account numbers handy.
- Go to GiftofCollege.com/Register and create a profile.
- Add your VHEIP 529 account information to your profile by selecting “Account Manager” and then clicking “Savings Plans” and selecting “Connect Your 529 or ABLE Account”. Next, select Vermont Higher Education Investment Plan from the drop-down menu. Enter the account owner, the account number, and the beneficiary name for the account into which you wish to redeem your gift. Save to your profile.
- Click on the “My Profile” tab and select the beneficiary’s name in the “My Plan” section. Then select “Redeem Gift Card.” Select “Gift of College Gift Card” from the Gift Method drop-down menu, and enter the gift card number. Select the Submit button.
- Your card will be redeemed for the Gift Card Amount shown on the card, and funds will be sent to VHEIP for deposit into your account. Please allow up to 14 business days to see the deposit reflected in your VHEIP account.
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How do I redeem a Gift of College card into a VHEIP account? Any Gift of College gift card may be redeemed into a VHEIP account.
- If you do not yet have a 529 plan account, you’ll first need to set up a VT529 account into which you can deposit your Gift of College funds. Click here to open a VHEIP account.
- If you already have a VHEIP 529 account, go to GiftofCollege.com/Register to register, and create a profile.
- Add your VHEIP 529 account information to your profile by selecting “Account Manager,” then clicking “Savings Plans” and selecting “Connect Your 529 or ABLE Account”. Next, select Vermont Higher Education Investment Plan from the drop-down menu. Enter the account owner, account number, and beneficiary name for the account into which you wish to redeem your gift. Save to your profile. (Note: You can add more than one beneficiary to your profile by choosing “add to plan” from the menu.)
- Redeem your gift card by first clicking the “My Profile” tab. In the “My Plan” section, select the beneficiary’s name to whom you would like to redeem the gift card. Then select “Redeem Gift Card.” Select “Gift of College Gift Card” from the Gift Method drop-down menu, and enter the gift card number (if the gift card number contains numbers and letters, no pin is required). Select the Submit button.
- Your card will be redeemed for the Gift Card Amount shown, and funds will be sent to VHEIP for deposit into your account. Please allow up to 14 business days to see the deposit reflected in your VHEIP account.
I need help redeeming my gift card. Who can I contact?
If you have additional questions about the Gift of College registry and redemption steps, consult the FAQs at giftofcollege.com/Help/ or contact Gift of College at [email protected] or by phone Monday-Friday (8am-6pm MST or 11am-9pm EST) at 1-877-244-6630.
I need help opening a VHEIP account. VHEIP college savings specialists can assist you! Contact us toll-free, Monday-Friday, 8am-7pm Eastern, at 1-800-637-5860. Or email [email protected].
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What is the Gift of College gift card? VSAC, state administrator of the VHEIP program, is pleased to offer Gift of College gift cards in $50 amounts at the Vermont locations of Cumberland Farms stores. Gift of College gift cards are a great way to get a recipient started with college savings and provide a meaningful way to acknowledge a birth or adoption, celebrate a birthday or other milestone, or give as a holiday gift for the education of a future student.
Where and how can I buy VSAC Gift of College cards? The two Vermont retailers offering $50 VSAC Gift of College cards are Kinney Drugs and Cumberland Farms. Specific store locations are listed on the Gift of College website Buy-In-Store link. If you cannot find the VSAC Gift of College cards in a particular Vermont Cumberland Farms store, check with the store manager or an employee.
Do Gift of College cards expire? No. There’s no expiration date on Gift of College cards.
Is there a fee for the VSAC Gift of College card? There are no fees to the recipient of the gift. The gift card recipient receives the full face value. There is a nominal fee for purchasing the gift card. The buyer pays the face value ($50) plus a $4.95 purchase charge at checkout.
Does a Gift of College card qualify for the Vermont income tax credit? When the Gift of College amount is redeemed into a VHEIP 529 account, the contribution may become eligible for Vermont state income tax credit by the individual who redeems the card, subject to proper documentation, to the extent of their Vermont tax liability. It is the responsibility of any contributor and the VHEIP account owner to maintain records necessary to any questions from the Internal Revenue Service or the Vermont Department of Taxes related to contributions toward a VHEIP account. The purchase of the Gift of College card does not qualify for the Vermont income tax credit because the card purchase is not a direct deposit into a specific VHEIP account. To gift directly into a VHEIP account and potentially qualify for the Vermont tax credit, consider gifting by eGift, electronic funds, or by check. Learn more about gifting options. If the funds from a gift contribution are spent on something other than eligible postsecondary expenses, the Vermont tax credit is subject to “recapture” by the Vermont Department of Taxes. Learn more about the Vermont state income tax credit for VHEIP account contributions.
Gift of College gift cards can also be used for student loan repayment, including VSAC student loans, when the card is redeemed into a loan account at the Gift of College site. Note: Use of the gift card for student loan repayment means that the gift card amount is never deposited into a VHEIP account — and therefore is not eligible for Vermont or federal tax advantages or tax credits.
Can a Gift of College card be used for student loan repayment? Gift of College gift cards can also be used for student loan repayment, including VSAC student loans, when the card is redeemed into a loan account at the Gift of College site. Note: Use of the gift card for student loan repayment means that the gift card amount is never deposited into a VHEIP account — and therefore is not eligible for Vermont or federal tax advantages or tax credits.
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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.
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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.
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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.
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