What do you want to do? Select from the list below for info.
Federal tax reform info: The federal tax act of 2017 includes provisions related to 529 plan accounts. See the October 2018 supplement to the Disclosure Booklet for details.
It’s easy to open an account with VHEIP and it only takes $25 to get started! Go to the Open an Account page to learn more.
Choose how you want to give a gift that lasts a lifetime! It’s one of the most important investments you can make in a child’s future.
With VHEIP, it’s easy to give.
Go to the Give a Gift page for details.
Contribute as little as $25 as often as you like. The more you invest and the earlier you start, the more opportunity your money has to grow. What are the minimum and maximum contribution limits?
Choose how you’d like to contribute:
Payroll deductions make contributing to your VHEIP account seamless and easy. Every little bit helps! If your employer allows, you can contribute through your paycheck for as little as $15 per pay period.
Download the VHEIP Payroll Deduction Guidelines for employees and employers.
Need to sign up for payroll contributions or make another change? See Account Forms.
Already have a 529 college savings plan account with another state? Or a Coverdell ESA or UGMA/UTMA for a child? If you’re a Vermont taxpayer, moving those assets to a VHEIP account may provide you with additional benefits, such as the Vermont state income tax credit on the contributions portion of the rollover and on future contributions you make into your VHEIP account. To be eligible for the Vermont income tax credit, the rollover funds must remain in VHEIP for the remainder of the tax year.
Before doing a rollover from another account, consider the differences in features and costs, and any possible tax consequences. Make sure to read the VHEIP Disclosure Booklet.
Transferring from another state’s 529 college savings plan?
Transferring from a Coverdell Education Savings Account?
Transferring from an UGMA/UTMA account?
Need to initiate an incoming rollover or make another change? See Account Forms.
Account owners paying Vermont taxes may be able to claim the Vermont state income tax credit.
On Schedule IN-112, VT Tax Adjustments and Credits, enter the amount you contributed to VHEIP during the tax year under Part IV, VT Income Tax Credits, line 1, VT Higher Education Investment credit.
See http://tax.vermont.gov/research-and-reports/document-library/tax-forms/individuals for forms. For details and examples, including information on nonqualified withdrawals, see the Vermont Department of Taxes Technical Bulletin (TB-66).
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 October 2018 supplement to the Disclosure Booklet for details.
Once you invest in any of the six VHEIP investment portfolios, you can transfer those already invested contributions and any earnings to another VHEIP investment portfolio. This change is allowed up to two (2) times per calendar year per beneficiary. However, if you replace the account beneficiary with another qualifying family member at the same time, there is no federal limit on the number of times this change can occur.
You can also change the instructions of how your future contributions are allocated across your selected investment options at any time. There is no limit to the number of times you can do this.
Need to rebalance your account, change the allocation of your future contributions, or make another change? See Account Forms.
For more about the investment options and performances, see Investment Options & Performance.
The account owner of the VHEIP account has all control of the funds. The account owner can change the beneficiary at any time to another member of the previous beneficiary’s family. As the account owner, you can even make yourself the beneficiary. If desired, you can also transfer account ownership to another individual, and/or name a contingent account owner.
Need to change an account owner, change a named beneficiary, or make another change? See Account Forms.
To change a mailing address, email, or to make any other administrative change for your accounts: Log in to your account online at any time, contact VHEIP toll-free at 1-800-637-5860, Monday through Friday, 8:00 am – 7:00 pm ET, or see our Account Forms page.
Need to make another change? See Account Forms.
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 October 2018 supplement of the Disclosure Booklet for details.
Important Notice Regarding Withdrawals:
In all circumstances referenced above, the withdrawal will be processed on the applicable trade date of when it was received, but funds will be held until the hold period has expired before being sent to you.
You can make a withdrawal from your account:
Complete the Withdrawal Request Form.
Allow 7 to 10 days for receipt of form and processing.
When you make a withdrawal, whether online or via the paper form, you:
Go paperless! Choose eDelivery. A $10 annual fee will apply for delivery of official plan documents (your statements, confirmations and/or plan disclosure information) via U.S. mail. This fee will be waived for tax forms. To learn more, please refer to the Disclosure Booklet.
Account owners can avoid this fee by signing up for eDelivery. Simply log in to your account, go to the Profile tab, and update your Delivery Options preferences.
PDF files require the free Adobe Acrobat Reader. Get it here.
Contributions by check should be accompanied by a completed Additional Contribution by Mail Form or should include reference the VHEIP account number(s) to which the contribution should be applied.×
As Vermont’s official 529 college savings plan, VHEIP is the only 529 plan that qualifies for a Vermont state income tax credit.
A qualifying family member includes any siblings or step-siblings, natural or legally adopted children, stepchildren, parents or ancestors of parents, step-parents, first cousins, nieces or nephews, and aunts or uncles. In addition, the spouse of the beneficiary or the spouse of any of those listed above also qualifies as a family member of the beneficiary.×
Qualified higher education expenses include tuition, fees, and the cost of books, supplies, and equipment required for the enrollment and attendance of the beneficiary at an eligible educational institution, and certain room and board expenses. Qualified higher education expenses also include certain additional enrollment and attendant costs of a beneficiary who is a special needs beneficiary in connection with the beneficiary’s enrollment or attendance at an eligible institution. For this purpose, an eligible educational institution generally includes accredited postsecondary educational institutions offering credit toward a bachelor’s degree, an associate’s degree, a graduate-level degree or professional degree, or another recognized postsecondary credential.×
A non-qualified withdrawal is any withdrawal that does not meet the requirements of being: (1) a qualified withdrawal; (2) a taxable withdrawal; or (3) a rollover. The earnings portion of a non-qualified withdrawal may be subject to federal income taxation, and the additional tax. Recapture provisions apply. See the Disclosure Booklet for details.×
Eligible education institutions are accredited, post-secondary educational institutions offering credit towards a bachelor’s degree, an associate’s degree, a graduate level or professional degree, or another recognized post-secondary credential. Use the Federal School Code Search on the Free Application for Federal Student Aid (FAFSA) website or contact your school to determine if it qualifies as an eligible educational institution. 529 Plan assets can also be used at some accredited foreign schools. If you have a question, contact your school to determine if it qualifies.×
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. We encourage you to consult a qualified tax advisor or the Vermont Department of Taxes at tax.vermont.gov 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.×