Federal tax reform info: The federal tax act of 2017 includes provisions related to 529 plan accounts, beginning with the 2018 tax year. See the Disclosure Booklet for details.
Questions? Find answers here or give us a call toll-free at 1-800-637-5860, Mon – Fri, 8:00 am – 7:00 pm ET.
What is the minimum gift amount?
There is no minimum amount that friends and family members may contribute (gift) to your existing account(s).
I’m a grandparent, relative, or family friend. Rather than open my own account, can I just make a contribution to VHEIP accounts already established by others for my grandchildren or loved ones?
Yes! You may contribute to a VHEIP account already set up for a beneficiary (or to multiple VHEIP accounts), and not maintain your own accounts for each child or loved one for whom you wish to make a gift. You can contribute online via electronic funds or by mail with a check. Learn how.
Individuals can also purchase a VSAC Gift of College gift card in $50 amounts at the Vermont locations of Kinney Drugs and Cumberland Farms stores. Learn more about purchasing or redeeming a VSAC Gift of College gift card.
It is the responsibility of the account owner and any contributor to VHEIP to maintain records necessary to respond to any questions from the Internal Revenue Service or the Vermont Department of Taxes related to contributions.
If you are a Vermont taxpayer, you may qualify for a 10% Vermont income tax credit on your annual gift contributions into a VHEIP account. Learn more about the Vermont tax credit.
Can a beneficiary have more than one VHEIP account?
Each account can have only one account owner and one beneficiary. However, each beneficiary may have more than one account, and you may open separate accounts for as many different beneficiaries as you wish. Friends and family members may open a separate account for your beneficiary. They will need to know the Social Security Number or federal Taxpayer Identification Number of your beneficiary and his or her birth date and street address (not PO Box) to complete the account enrollment process.
Can friends or family see my VHEIP account if I invite them to make a gift?
No. Only the account owner has access to account details. Gift givers can only contribute to the account. They cannot perform any transactions or see account details.
How are gift contributions invested?
Contributions to a VHEIP account are invested according to the investment portfolios and allocations established by the account owner for his/her account. Friends and family members can contribute to the account, but only account owners can access the account and make changes to investment allocations.
What impact, if any, do IRS Gift Law Limits have?
Contributions into a VHEIP account may reduce the taxable value of your estate. Your contributions, together with all other gifts from the account owner or third-party contributors to the designated beneficiary, may qualify for an annual federal gift tax exclusion of $15,000 per donor, per designated beneficiary. If your contribution to a VHEIP account for one beneficiary exceeds that $15,000 (or $30,000 for joint filers) exclusion, you may elect to treat up to $75,000 of the contributions (or $150,000 for joint filers) as having been made over a period of up to five years for purposes of determining your annual federal gift tax exclusion. This means that an account owner or a third-party contributor may contribute up to $75,000 in a single year to an account without the contribution being considered a taxable gift, provided that the contributor makes no other gifts to the beneficiary in the same year in which the contribution is made and in any of the succeeding four calendar years. The contributor must make this election on his or her federal gift tax return by filing IRS Form 709. Consult your tax advisor for additional details.