Saving for College the Smart way - 529 Plans          

 

Vermont 529 Plan

Vermont offers one 529 college savings plan, a direct plan called the Vermont Higher Education Investment Plan (VHEIP)


Vermont Higher Education Investment Plan

Vermont Higher Education Investment Plan is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type:  Direct – this 529 plan can be purchased directly from the state.

Fund Family:  TIAA-CREF and Vermont Student Assistance Corporation Trust

Minimums:  Initial and subsequent contributions are $25 and $15 with payroll deduction.

Maximum Contributions:  Currently, you can contribute to your account until it reaches $352,800 in your Vermont 529 plan.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  Good news for Vermont residents – by investing in your state’s 529 plan, you can get a credit of up to $250 on your state income taxes for single filer and $500 for married filers.  You also get federal income tax benefits as you do not pay income tax on your earnings.  Out-of-state participants still get the federal tax benefits.

Residency:  Vermont Higher Education Investment Plan is open to all United States residents, not just those in Vermont.

You can learn more about Vermont’s 529 plan at the official website . http://www.vheip.org/.

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