FAQs

There isn’t a maximum above and beyond the account maximum of $550,000. Once the account reaches its $550,000 maximum, it can continue to earn money, but no additional money can be contributed to the account until the balance dips below $550,000 again.

You can share account access by adding Authorized Users. This feature allows others to view or help manage your account depending on their permission levels. You can choose from Viewer, Contributor, and Manager roles, which give Authorized Users unique permissions by role. Only the account Administrator (the person who originally set up the account) can invite, edit, or remove authorized users.

To add an Authorized User:

1. Sign in to your account

2. From your dashboard, click on the dropdown next to your profile icon in the upper right corner  

3. Select “Manage Access” 

4. Enter the Authorized User’s name, email, and phone number

5. Assign a role that grants the permissions you want as shown in the chart

The Authorized User will receive a secure email invitation and will need to verify their identity through multi-factor authentication before accessing your account. You can also update or remove access at any time through the same “Manage Access” section, ensuring you stay in full control of who can view or manage your account.

Yes you can. We’d hate to see you go, but we’re happy to help. Just give us a call at 1-800-637-5860. Individuals with speech or hearing disabilities may dial 711 to access Telecommunications Relay Service (TRS) from a telephone or TTY. You can also complete and submit a Withdrawal Form (PDF) and select “close my account” on the form.

If you decide to sell or completely liquidate one or more of your portfolios in order to buy another one, you can only do so twice every calendar year. If you choose to simply contribute to a new, additional portfolio, this addition is not considered one of your twice-a-year investment changes.

When you create a VT529 account, you’ll be prompted to select the portfolio options you wish to contribute to. Review your investment options here to get a better sense of what’s available.

If you’d like to change your account’s investment choices, you can do this two ways, but remember, in some cases, you can only do this twice every calendar year.

You can sell your portfolio and use that money to invest in a totally new one. Note: this would be considered an investment change and can only be done twice a year. If you’d like to go this route, you can easily change things by signing into your account and clicking on the “Investments” link.

Alternatively, you can keep your previous portfolio(s) and just choose to put future contributions in a new portfolio type. This allows you to make adjustments to your portfolio over time without ever selling any of them outright. This option would not count against the limit on making two investment changes per year. You can contribute to a different portfolio online by signing into your account and clicking on the “Transfers” link, or you can contribute to new portfolios offline by using our Contribution Form (PDF).

You can transfer an account to another owner using our Change Account Owner Form (PDF).

The plan administrator must send the 1099-Q by January 31, so you should receive the form no later than early February following the close of the tax year. You will receive it via mail or electronic delivery based on communications preferences. 

When you make contributions to a VT529 account, your money has the chance to grow and earn interest, tax-free. And unlike many other investment options, when you withdraw your savings to use for qualified educational expenses, you can spend it tax-free too.

A state income tax credit of 10% of the first $2,500 contributed to VT529 per beneficiary per tax year is available to any Vermont taxpayer (or, in the case of a married couple filing jointly, 10% of the first $5,000 contributed per beneficiary) – a tax credit worth up to $250 per beneficiary ($500 per beneficiary for married couples filing jointly). Gifts made by a Vermont taxpayer to any VT529 account are also eligible for the credit.

Additionally, any funds that you plan to roll over from another 529 College Savings Plan are considered new contributions and may impact your taxes in a given tax year. It’s best to contact a tax advisor if you have questions about potential tax implications.

Yes. All Vermont residents are eligible to contribute to a VT529 account and claim the state income tax credit. You do not need to be the owner of the account to contribute and claim the tax credit. Please note, each contribution may only be claimed once for tax purposes, either by the account owner or the person making the gift contribution. 

If you make a withdrawal from your account, you will receive IRS Form 1099-Q, which details all of the withdrawals you made throughout the tax year from your account. The recipient of the Form 1099-Q will be either the account owner or the beneficiary, depending upon the tax responsible party you elected during the redemption process.  Withdrawals sent to an eligible educational institution will be reported under the beneficiary's Social Security number (or taxpayer identification number), per IRS guidelines.

To ensure that you properly handle matters on your federal income tax return, please consult a tax advisor and learn more about Form 1099-Q from the IRS directly.