VT529 celebrates College Savings Day with Vermont families

National 529 Day is May 29 (get it?), highlighting the advantages of 529 savings plans in helping families prepare for education after high school. In the Green Mountain State, all Vermonters are invited to join in with these college-savings opportunities:

VSAC to open college savings accounts for Vermont babies born in the state on ‘529 Day’

This year, VSAC, which administers the VT529 program for the state of Vermont, has again partnered with the Vermont Association of Hospitals and Health Systems to give a $100 deposit into a VT529 savings account to every Vermont baby born in a Vermont hospital on May 29, 2023.

“Vermont hospitals believe that a healthy, vibrant Vermont is possible, and while excellent health care is an essential component, addressing the social determinants of health is equally important,” said VAHHS President and CEO Mike Del Trecco. “Specifically, education has a profound impact on population health, and that’s why VAHHS partners with VSAC for 529 Day. We know that investments in education will provide health benefits for our children, families and communities.”

Vermonters: Enter for a chance to win $529 in college savings!

In addition to celebrating our 5/29 babies, one lucky individual of any age will be chosen to receive $529 in a college savings account in an online drawing. To enter to win $529 in a VT529 college savings account, visit vsac.org/save and sign up by June 16. See the official rules.

All these efforts are to help families get a start on planning for college. That's because all Vermonters will need some form of education or training after high school to be qualified for Vermont’s future jobs. And research shows that students from families who save even a small amount (less than $500) for education are three times more likely to go on to college and four times more likely to graduate from a program.

“College savings accounts are clearly a powerful tool,” said Scott Giles, president and CEO of VSAC. “We want to encourage parents to open a VT529 account and get started early to save for college and other career training. The ideal time to begin saving is between birth and age 5 to allow your investment to build over time.” But it’s never too late to start saving — even if your child is in high school, college or graduate school.

What is a 529 plan? 

These education savings plans are designed to help families set aside funds for future training costs, with tax advantages to help make saving easier. The plans are named after Section 529 of the Internal Revenue Code, which created these types of savings plans in 1996. Most 529 plans are operated by state agencies, like Vermont Student Assistance Corp. The VT529 plan, named the Vermont Higher Education Investment Plan, has more than 27,000 accounts worth over $500 million to help pay for training and education after high school. The VT529 plan benefits family members of all ages, from babies to grad students and even adults returning to training.

As Vermont’s official 529 plan, the VT529 program offers a 10% annual VT state income tax credit to Vermont taxpayers on the first $2,500 contributed each year to the plan (or $5,000 for joint taxpayers). Legislative changes further enhanced the program last year, allowing funds to pay down existing student debt up to $10,000, along with tuition, room and board, books and computers, apprenticeships, and training in trades. Funds can be used at institutions throughout the U.S., as well as at schools in Canada and around the world. Your VT529 can be used for adult education or retraining, too.

What if you can’t save a lot right now? If, like many Vermonters, you’re focused on meeting today’s financial needs, you may feel that there’s little extra for saving. We understand that. 

But you may be surprised what a difference saving even small amounts can do over time. Saving just $25 a month to invest in your 529 can add up, helping you prepare for future goals.

Get started with VT529 savings. 

• Open a NEW account with a $25 deposit (or just $15 using payroll deduction).
• Add any amount to an EXISTING account.
• Purchase or redeem a Gift of College gift card.
• Invite others to give a gift to your VT529 accounts via eGift.

Vermont’s four-week-long 529 college savings celebration is a great time to begin! Whether you’re young or old, be sure to join VSAC to celebrate 529 Day and get a chance to win $529 in a VT529 college savings account. Find out more about VT529.