Vermont 529 plan

Vermont 529 Plan

Program match on contributions: None

State tax deduction or credit for contributions: Beginning in 2007, a 10% tax credit on up to $2,500 in contributions per beneficiary to the Vermont 529 plan may be claimed each year against Vermont income tax (maximum $250 credit per beneficiary per year). 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 remain in the account for the remainder of the taxable year. Contribution deadline is December 31.

State tax recapture provisions: Nonqualified withdrawals from this plan are subject to recapture, to the extent of Vermont tax credits previously claimed. Outbound rollovers are not subject to recapture.

Age-based investment options: The Managed Allocation Option contains six 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: Select between the 100% Equity Option (a multi-fund portfolio) and an interest-bearing note designed to return at least the 91-day Treasury Bill rate (the Interest Income Option).

Single Funds
 * 100% Equity Option
 * TIAA-CREF Growth Equity Fund (28.7%)
 * TIAA-CREF Large Cap Value Fund (29.4%)
 * TIAA-CREF S&P 500 Index Fund (6.3%)
 * TIAA-CREF Small Cap Equity Fund (5.6%)
 * TIAA-CREF Real Estate Securities Fund (10%)
 * TIAA-CREF International Equity Fund (20%)


 * TIAA Principal Plus Interest Option (100%)

Expenses: 0.80%; None for the Interest Income Option.


 * Plan site
 * Plan document

Links

 * Morningstar Overview
 * State Creditor Protections for 529 Plans