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The federal tax act of 2017, signed into law in December 2017, includes provisions related to 529 plan accounts, beginning with the 2018 tax year:

VSAC, as administrator of the Vermont 529 plan, will provide information as details about the Vermont income tax effects are clarified during the 2018 legislative session. We encourage you to consult a qualified tax advisor or the Vermont Department of Taxes at concerning federal and state tax implications for tax years 2018 and beyond, and to save documentation for how all VT 529 fund withdrawals are used.