General InformationDownload PDF Report

Vermont Higher Education Investment Plan logo

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.

Our Ratingx

4 of 5

Fee Scorex

4 of 5

Performancex

N/A

  • Program typeSavings
  • Inception1999
  • State agency
    Vermont Student Assistance Corporation (VSAC)
  • Tax deduction
    For single filers, 10% on up to $2,500/yr
    For joint filers, 10% on up to $5,000/yr
  • Program Manager
    Intuition College Savings Solutions, LLC
  • Program distributor
    Vermont Student Assistance Corporation (VSAC)
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for VT 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.

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.

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.


1.98of 5

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.

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.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 Lookup

UNLOCK 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

Example

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 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.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:

UNLOCK PRO

Want to Boost your Savings?

You could be saving more with gifts from family and friends. CollegeBacker makes it easy to start a 529 plan, and then invite others to contribute for birthday parties, holidays, or even on a monthly basis.

Start saving with family and friends

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.

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:

UNLOCK PRO

Contact

Website:

http://www.vheip.org

Telephone:

1-800-637-5860

State News