The Vermont Student Assistance Corporation (VSAC) has renewed its agreement with TIAA-CREF Tuition Financing, Inc. to manage the Vermont Higher Education Investment Plan-Vermont's official 529 college savings plan - and is offering several enhancements to benefit Vermont families.
The number of VHEIP investment options has expanded from three to six to provide families a wider range of choices with varying strategies and degrees of risk. Investors may choose options that range from conservative to aggressive, selecting those that best fit their college savings objectives and investment philosophy.
In addition, program management fees have been restructured to help account owners put more of their investments toward their college savings goals. Of particular note, fees have been reduced for the Managed Allocation Option, a popular choice for many families because the underlying investments automatically adjust as the student beneficiary ages.
In addition to the changes, plans are under way to make managing a VHEIP account online much easier. Account owners will be able to view electronic quarterly and annual statements online, rebalance existing assets to new or existing investment options, and make withdrawals to the bank account on record.
The Vermont Higher Education Investment Plan launched in 1999 and has grown to an asset value of $100 million in about 9,600 accounts. VHEIP is the only 529 plan for which Vermont taxpayers can claim a state income tax credit of up to $250 per taxpayer per beneficiary (up to $500 for married couples filing jointly) on contributions in each taxable year.