FAQs

There is no fee to open an account. However, you’ll need to make an initial deposit of at least $25 to get started and a $1 minimum for any contribution after that. Additionally, there are some minimal fees that apply to all accounts.

The easiest and fastest way to enroll and manage a VT529 account is online. If you want to use paper forms for enrollment or managing your account, you can find the forms here.

Make sure you have this information handy:

• Your email address;

• Your birthday;

• Social Security Number or Tax Identification Number;

• Residency address.

It only takes a few minutes to open an account online. You will need to have some basic information handy.

Once you’ve been verified, you’ll set up the account details by:

• Creating a login

• Connecting a bank account

• Selecting the cash option and/or an investment option

Any U.S. citizen or resident with a valid Social Security number or tax ID can be a beneficiary.

No. The beneficiary of your account must have a valid Social Security number. But, you could always open a VT529 account for yourself, and then switch the beneficiary to the child once he or she is born, provided they have a valid Social Security number.

Not necessarily. But there are some things to consider. When you have a VT529 account, you can change the beneficiary twice every calendar year. So, assuming none of your children will be attending college or any other eligible school at the same time, it’s possible to use the same account. However, to be on the safe side, you might want to open an account for each child, so they have access to their funds when needed. 

Yes. You may decide to open separate accounts for different beneficiaries, for example, one for each child or grandchild. Note, you can only have one account per beneficiary. You, personally, cannot have two accounts for the same person. That said, an individual may be the beneficiary on multiple accounts, for example, a parent may set up an account for their daughter, and an aunt may set up a separate account for that same child.

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. 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.