FAQs

Participants paying Vermont taxes may be able to claim the Vermont state income tax credit for contributions made to a VT529 account. Said contributions may only be claimed by a single individual and may not be for a subsequent or future year.

Unsure how much you contributed during a certain tax year? Log in to view your Financial Statements, which include a transaction summary at the end of each quarter outlining the tax year for each contribution received during that time period.

• On Schedule IN-119, VT Tax Adjustments and Non-Refundable Credits, enter the amount you contributed to VT529 during the tax year under Part II, VT Income Tax Credits, line 1, VT Higher Education Investment credit, and calculate the credit per the instructions. Note: FEIN if required for online filers is 030216589.

• Enter your total tax credit amount (VT529 plus any other Vermont tax credits you receive) on IN-111, Line 19.

• Paper filers may need to copy the annual VT529 statement and include it with forms when filing.

See the Vermont Official State Website 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 Internal Revenue Code includes provisions related to 529 plan accounts. See the Disclosure Booklet [LINK] for details. In 2022, Vermont tax law was updated to add two new allowable uses of funds withdrawn from a VT529 account without adverse impact on the Vermont income tax credit: (1) for apprenticeship programs registered and certified with the U.S. Secretary of Labor and (2) for repayment of up to $10,000 per the lifetime of a beneficiary in student loans for post-secondary education at an approved postsecondary education institution. (See the VT529 tax credit information on the VT Tax website.) Vermont tax law currently does not treat a rollover to a Roth IRA or a withdrawal used for K through 12 education expenses as an allowable use. Please consult your tax advisor for how this may affect your personal Vermont tax situation.

Yes, you can connect more than one bank account as well as multiple types of bank accounts. Each account and type will need to be connected individually, but you can have both savings and checking accounts linked to your account at one time. The Account Owner/Custodian or Beneficiary must own the bank account connected to the Plan account.

Once you’ve logged in to your account, find your “Account” section in Your Profile, and click on “Add a new bank account.” Follow the steps to connect a new bank account associated with either the beneficiary of the VT529 account or the Account Owner/Custodian. Keep in mind that you will not be able to withdraw money from a new bank added within 10 days so that we can verify the information you gave us.

You can connect a checking or savings account.

If you are managing VT529 accounts for more than one beneficiary, you can use the same banking information on multiple accounts. The bank account has to be added to each plan account individually.

Log in to your account, go to the “Settings” tab and click on the “Add a new bank” button. Follow the steps to link a new bank account by connecting via Plaid or manually adding an account.

Keep in mind that you won’t be able to withdraw money to a newly added bank account immediately. There is a 10-day withdrawal hold.

Simply put, you add funds to a prepaid card and then use it to make purchases — either online or in-store. With a True Link 529 Visa^® Prepaid Card, you can:

• Make purchases everywhere Visa is accepted

• Add funds from your VT529 account and reload the card as needed

• Have peace of mind that your funds are FDIC insured through Sunrise Banks, N.A.* — and all cards are covered by Visa's Zero Liability Policy^†

With a True Link 529 Visa^® Prepaid Card, you cannot:

• Withdraw money from ATMs

• Get cash back at stores

* True Link Financial, Inc. is a financial technology company and not a bank. Banking services are provided by Sunrise Banks N.A. Your funds are FDIC insured up to $250,000 through Sunrise Banks, N.A., Member FDIC.

† Visa’s Zero Liability Policy does not apply to certain commercial card and anonymous prepaid card transactions, or transactions not processed by Visa. Cardholders must use care in protecting their card and notify their issuing financial institution immediately of any unauthorized use. Contact True Link for more detail.

In just a few steps, you can sign up to receive a True Link Visa® Prepaid Card using your new VT529 account number (“77” followed by your previous account number). After you’ve registered, it takes about 6-8 business days to receive your card in the mail. For any subsequent cards, you may opt to pay for expedited shipping, which takes 2-4 business days. Once your card is activated, simply load it with funds from your VT529 account and you can start using it.

True Link Financial, Inc. is a financial technology company that powers the True Link 529 Visa® Prepaid Card features and services.

VT529 partnered with True Link to give cardholders access to custom features and controls. Cardholders have the option to set up restrictions on certain spending categories — important functionality for the disability community — and turn on SMS alerts to notify cardholders of a range of activity for added protection.

The True Link 529 Visa® Card offers a convenient way for beneficiaries to spend funds from a VT529 account.

Here’s how to fund your True Link 529 Visa® Prepaid Card

• Log in to your VT529 account

• Once you’ve logged in, initiate a withdrawal directly to your True Link 529 Visa® Prepaid Card by navigating to the Withdrawals page and selecting the Prepaid Card option

• Enter the withdrawal amount from your investment option(s)

• Review the information, and then edit or confirm your withdrawal

Please note: Each card has a unique routing and account number. Once the funds have been added to the True Link 529 Visa® Prepaid Card, you can begin to make transactions.