FAQs

No. You will only receive a 1099-Q tax form if you withdrew funds from or closed your VT529 account for that tax year. If you did not make any withdrawals, you are still able to claim the state income tax credit. Please log in to your account portal for details on the total contributions made in a given tax year. And remember to use this information when completing your online or paper tax filing.

The money that you contribute to your VT529 account is made with after-tax dollars, and any of your account earnings can be withdrawn and used to pay for qualified expenses tax-free.

Yes. Any family member or friend can open aVT529 account for a beneficiary as long as they’re a U.S. citizen or resident and have a valid Social Security number. They will also need the beneficiary’s Social Security number, date of birth, basic contact information, and an initial $25 contribution to open the account.

Any gift contribution to a VT529 account is invested based on the preferences and choices of the account owner. The only way you can have control over how your gift contribution will be invested is if you open an account for the beneficiary yourself.

VSAC, state administrator of the VT529 college savings program, offers Gift of College gift cards in $50 amounts at Vermont locations of Cumberland Farms stores. Specific store locations are listed on the Gift of College website Buy-In-Store link.

1. Have your VT529 beneficiary account numbers handy.
   If you do not already have an existing 529 account, you’ll first need to open an account into which to deposit the Gift of College funds. 

2. Go to GiftofCollege.com/Register and create a profile.

3. Add your VT529 account information to your profile by selecting “Account Manager” and then clicking “Savings Plans” and selecting “Connect Your 529 or ABLE Account”. Next, select Vermont Higher Education Investment Plan from the drop-down menu. Enter the account owner, the account number, and the beneficiary name for the account into which you wish to redeem your gift. Save to your profile.

4. Click on the “My Profile” tab and select the beneficiary’s name in the “My Plan” section. Then select “Redeem Gift Card.” Select “Gift of College Gift Card” from the Gift Method drop-down menu, and enter the gift card number. Select the Submit button.

5. Your card will be redeemed for the Gift Card Amount shown on the card, and funds will be sent to VT529 for deposit into your account. Please allow up to 14 business days to see the deposit reflected in your VT529 account.

No, there are no fees for any rollovers out of the plan.

We'd be sorry to see you go! You can choose to roll over part or all of the funds in your VT529 account into another 529 plan by filling out a rollover form from your new 529 College Savings Plan. Keep in mind that if you roll over your entire account balance, your VT29 account will still remain open until you decide to close it.

You can make one rollover in a 12-month period without being taxed.

It’s easy. Just download and complete our Rollover Form (PDF). Remember, you can transfer funds from another 529 College Savings Plan into a VT529 account without incurring any federal income tax if you do so within a 12-month period and if the funds are for the same beneficiary or a family member. Also, worth noting, the plan from which you are transferring funds may have different features and fees, so it’s best to consult your tax advisor and your other 529 College Savings Plan manager before you initiate your rollover.