General InformationDownload PDF Report
Vermont Higher Education Investment Plan
The Vermont Higher Education Investment Plan features age-based and static options from Vanguard and DFA. The plan also offers a TIAA-CREF life insurance product option.
- Program typeSavings
- State agencyVermont Student Assistance Corporation (VSAC)
- Tax deductionFor single filers, 10% on up to $2,500/yrFor joint filers, 10% on up to $5,000/yr
- Program ManagerIntuition College Savings Solutions, LLC
- Program distributorVermont Student Assistance Corporation (VSAC)
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for non-residents
This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.
Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.
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
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.
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.View more age-based investment options
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).View more static investment options
Underlying investments:Mutual funds from TIAA, Vanguard, DFA, and the TIAA-CREF Life Insurance Company Funding Agreement.View a full list of this plan's investment options
Underlying fund allocations:UNLOCK PRO
Portfolio Fees & Performance LookupUNLOCK PRO
Fees & Expenses
Enrollment or application fee:None.
Account maintenance fee:$10 annually, waived for accounts that have elected electronic delivery of all documents.
Program management fees:Plan management fee ranges from 0.25% - 0.29%; 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; none for the Principal Plus Interest Option.
Taxes and other Benefits
- For single filers, 10% on up to $2,500/yr
- For joint filers, 10% on up to $5,000/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
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 if the contributors are married and file a joint tax return, are eligible for a 10% Vermont 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.
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 definition of qualified expensesThe state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education 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.
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?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:UNLOCK PRO
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