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VT 529

3 / 5

Our rating

Best VT resident benefits

VT resident benefits

The VT 529 Plan features age-based and static options from Vanguard and DFA. The plan also offers a TIAA-CREF life insurance product option.

VT 529

KEY METRICS

OVERVIEW

Program type

Savings

Inception

1999

State agency

Vermont Student Assistance Corporation (VSAC)

Tax deduction

For single filers: 10% amounting to up to $250/yr

For joint filers: 10% amounting to up to $500/yr

Program manager

Catalis Regulatory and Compliance, LLC.

Program distributor

Vermont Student Assistance Corporation (VSAC)

Manager contract term

MORE INFORMATION

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 $550,000.

Minimum contributions:

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

Does the program offer an e-gifting platform for receiving gift contributions?

This plan offers an online tool to share a gift contribution link with family and friends.

SPONSORED

Other great plans to consider

You are not limited to your own state's 529 plan, so compare the plan and tax benefits offered by your state to other options. Here are some plans that are available to residents of any state and have earned awards in our 529 Plan Ratings:

Investment Options

Investors in VT 529 can select from the following investment options. Click on a portfolio name for more information.

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.
PortfolioE.R. % Equity1yr performance
Age Band 7 (12-13 Years)0.39%40%5.74%
Age Band 8 (14 Years)0.39%35%5.62%
Age Band 9 (15 Years)0.39%30%5.5%
Age Band 10 (16 Years)0.39%25%5.36%
Age Band 11 (17 Years)0.39%20%5.14%
Age Band 12 (18+)0.39%29%4.82%
Age Band 5 (8-9 Years)0.39%55%6.03%
Age Band 6 (10-11 Years)0.39%45%5.95%
Age Band 4 (6-7 Years)0.39%65%6.17%
Age Band 3 (4-5 Years)0.39%75%6.32%
Age Band 2 (2-3 Years)0.39%80%6.51%
Age Band 1 (0-1 Years)0.39%85%6.54%

Age-based/Enrollment Year 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, Fixed Income Portfolio, and the Principal Plus Interest Option).

Underlying investments:

Mutual funds from TIAA, Vanguard, DFA, and the TIAA-CREF Life Insurance Company Funding Agreement. Brinker Capital Investments, LLC (Investment Manager)

Underlying fund allocations:

Portfolio Fees & Performance Lookup

Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

A $25 mail delivery fee is charged annually, waived for accounts that have elected electronic delivery of all documents.

Program management fees:

Plan management fee ranges from 0.27% - 0.30%; administrative fee of 0.05% for each portfolio.

Expenses of the underlying investments:

0.04% to 0.07%; none for the Principal Plus Interest Option.

Total asset-based expense ratio:

0.39% for each portfolio; none for the Principal Plus Interest Option.

Taxes and other Benefits

Tax deduction for single filers:

10% amounting to up to $250/yr

Tax deduction for joint filers:

10% amounting to up to $500/yr

Program match on contributions:

None.

State tax deduction or credit for contributions:

Contributions to the VT 529 plan of up to $2,500 per beneficiary per year by an individual, and up to $5,000 per beneficiary per year if the contributors are married and file a joint tax return, are eligible for a 10% VT income tax credit (up to $250 per beneficiary per individual taxpayer or $500 per beneficiary for married taxpayers filing jointly). Taxpayers may claim the credit for contributions to a VHEIP account they own or for gift contributions to a VHEIP account owned by someone else. 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.

Calculate your Vermont 529 tax benefit

Find out how much you can save on state taxes this year by contributing to a Vermont 529 plan.

Your tax savings per year
$0

Household income

$100,000

Monthly Contribution

$100

State tax recapture provisions:

Nonqualified withdrawals from this plan, is defined for the purposes of the tax credit, as all withdrawals except used exclusively for costs at an accredited institution, apprenticeship programs or when the beneficiary has died or has become disabled, are subject to recapture, to the extent of Vermont tax credits previously claimed. Outbound rollovers are not subject to recapture.

State definition of qualified expenses

The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education or an apprenticeship program, as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This does not include tuition for elementary or secondary education, or education loan payments. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.

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

Is there a rewards program or outside scholarship program that works with this program?

Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.

Statutory protection of an account from creditors:

Distributions & Terminations

To whom are distributions made payable:

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

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership. However, the new owner must have/open an account for the beneficiary and the funds are transferred to that account.

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:

Contact

Website:

http://www.vheip.org

Telephone:

1-800-637-5860

A good place to start:

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