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Vermont Higher Education Investment Plan
Vermont
This 529 savings program features age-based and static options using TIAA-CREF mutual funds and a principal-protected account.
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General
Did you know?
Residents are not limited to investing in their own State's plan. Another state may offer a plan that performs better and has lower fees. If there is no tax break offered for in-state investors... shop around!
Also, the plan chosen does not affect which state the student enrolls in. An investor can live in NY, invest in a plan from NV and send a student to college in FL.
Program type:
Savings
How to enroll:
Enroll directly with the program.
Initial year of operation:
1999
State agency(ies):
Vermont Student Assistance Corp. (VSAC)
Program manager:
TIAA-CREF Tuition Financing, Inc.
Program distributor:
TIAA-CREF Individual & Institutional Services, LLC
Manager contract term:
Premium subscription required for this data.
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 six 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 four multi-fund options (the Diversified Equity Option, the Equity Index Option, the Balanced Option, and the Fixed Income Option), and the Principal Plus Interest Option which guarantees principal and a stated rate of interest.
Underlying investments:
TIAA-CREF institutional mutual funds; the Principal Plus Interest Option is issued by TIAA-CREF Life Insurance Company.
Underlying fund allocations:
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Investment performance link:
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Portfolio Fees & Performance Lookup
Premium subscription required for this data.
Fees & Expenses
Enrollment or application fee:
None
Account maintenance fee:
None
Program management fees:
0.53% manager fee for the age-based option includes underlying mutual fund expenses, and will be reduced to 0.50% when the plan reaches $150 million in assets or to 0.45% when the plan reaches $225 million in assets; 0.45% manager fee for static fund options does not include underlying fund expenses; no fee for the Principal Plus Interest Option.
Expenses of the underlying investments:
Included in the program manager fee for the age-based option. For the static fund options, underlying expenses range from approximately 0.08% to 0.44%.
Total asset-based expense ratio:
0.53% - 0.89%. None for the Principal Plus Interest Option.
Taxes and other Benefits
Program match on contributions:
None
State tax deduction or credit for contributions:
A 10% tax credit on up to $2,500 in contributions per beneficiary to the Vermont 529 plan may be claimed each year against Vermont income tax (maximum $250 credit per beneficiary per year). 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.
Value of in-state tax benefits:
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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:
Vermont law exempts qualified distributions from Vermont and non-Vermont 529 plans via conformity to the federal tax exclusion.
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:
Premium subscription required for this data.
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:
Premium subscription required for this data.
Contact
Telephone:
1-800-637-5860
Web site:
State News
- Vermont to enhance 529, stay with TIAA-CREF (10/09/2009)
- Vermont accepting bids for 529 program manager (10/20/2008)
- Vermont adopts tax credit for 529 contributions (06/16/2003)
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