529 PLANS

Vermont Higher Education Investment Plan

Vermont

The Vermont Higher Education Investment Plan features age-based and static options from four mutual fund families and a money market portfolio.

5-Cap Rating

Resident:
Non-Resident:

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
N/A 3.30 2.50 3.60 0.30

General

Program type:

Savings

How to enroll:

Enroll directly with the program.

Initial year of operation:

1999

State agency(ies):

Vermont Student Assistance Corporation (VSAC)

Program manager:

Intuition College Savings Solutions, LLC

Program distributor:

Intuition College Savings Solutions, LLC

Manager contract term:

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Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens, UGMA/UTMA custodians, and legal entities.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Vermont's 529 plan for the same beneficiary reach $352,800.

Minimum contributions:

$25, or $15 per pay period via payroll deduction.

Investment Options

Age-based investment options:

The Managed Allocation Option contains 6 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary's age and later reassigned to more conservative portfolios as the beneficiary approaches college age.

Static investment options:

Choose from among 5 multi-fund options (Diversified Equity Portfolio, Equity Index Portfolio, Balanced Portfolio, and the Fixed Income Portfolio, and the Treasury Obligations Portfolio).

Underlying investments:

Mutual funds from TIAA-CREF, Vanguard. DFA, and the Federated Treasury Obligations Fund.

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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See Investment Options

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

None.

Program management fees:

Plan management fee ranges from 0.25% - 0.28%; administrative fee of 0.05% for each portfolio.

Expenses of the underlying investments:

0.05% to 0.09%.

Total asset-based expense ratio:

0.39% for each portfolio; 0.06% for the Federated Treasury Obligations Portfolio (with waiver of plan management and administrative fee.)

Taxes and other Benefits

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to the Vermont 529 plan of up to $2,500 per beneficiary per year by an individual, and up to $5,000 per beneficiary per year by married taxpayers who each make their own contributions, are eligible for a 10% tax credit against Vermont income tax. Only contributions made by the account owner, and by a non-account owner who files a joint return with the account owner, are eligible for the credit. The principal portion of a rollover from another 529 plan is eligible for the credit, provided the funds remain in the account for the remainder of the taxable year. Contribution deadline is December 31.

State tax recapture provisions:

Nonqualified withdrawals from this plan are subject to recapture, to the extent of Vermont tax credits previously claimed. Outbound rollovers are not subject to recapture.

State tax treatment of qualified distributions:

Qualified distributions from Vermont and non-Vermont 529 plans are exempt.

State tax treatment of rollovers:

Vermont follows federal tax-free treatment.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

No, however the account is treated as an asset of the student's parent and not as an asset of the beneficiary

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

No

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Eligible education institution or account owner, as directed by the account owner.

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Web site:

Click here to visit

Telephone:

1-800-637-5860

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