The Vermont Higher Education Investment Plan features age-based and static options using TIAA-CREF mutual funds and a principal-protected account.
- Summary: The Vermont Higher Education Investment Plan features age-based and static options using TIAA-CREF mutual funds and a principal-protected account.
- Program type: Savings
- Telephone: 1-800-637-5860
- Web site: Click here to visit
- Program manager: TIAA-CREF Tuition Financing, Inc.
- State residency requirements: None
- Maximum contributions: Accepts contributions until all account balances in Vermont's 529 plan for the same beneficiary reach $352,800.
- Minimum contributions: $25, or $15 per pay period via payroll deduction.
- Age-based investment options: The Managed Allocation Option contains 6 portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the beneficiary?s age and later reassigned to more conservative portfolios as the beneficiary approaches college age.
- Static investment options: Choose from among 4 multi-fund options (the Diversified Equity Option, the Equity Index Option, the Balanced Option, and the Fixed Income Option), and the Principal Plus Interest Option which guarantees principal and a stated rate of interest.
- Underlying investments: TIAA-CREF institutional mutual funds; the Principal Plus Interest Option is issued by TIAA-CREF Life Insurance Company.
- Enrollment or application fee: None.
- Account maintenance fee: None.
- Program management fees: 0.50% manager fee for the age-based option includes underlying mutual fund expenses, and will be reduced to 0.45% when the plan reaches $225 million in assets; 0.45% manager fee for static fund options does not include underlying fund expenses; no fee for the Principal Plus Interest Option.
- Expenses of the underlying investments: Included in the program manager fee for the age-based option. For the static fund options, underlying expenses range from 0.09% to 0.39%.
- Total asset-based expense ratio: 0.50% - 0.84%. None for the Principal Plus Interest Option.
- Program match on contributions: None.
- State tax deduction or credit for contributions: Contributions to the Vermont 529 plan of up to $2,500 per beneficiary per year by an individual, and up to $5,000 per beneficiary per year by married taxpayers who each make their own contributions, are eligible for a 10% tax credit against Vermont income tax. Only contributions made by the account owner, and by a non-account owner who files a joint return with the account owner, are eligible for the credit. The principal portion of a rollover from another 529 plan is eligible for the credit, provided the funds rema in the account for the remainder of the taxable year. Contribution deadline is December 31.