VERMONT

Vermont Higher Education Savings Plan

Type: Savings

Phone: 800-637-5860

State tax deduction for residents:Income tax credit for 5% of up to $2,000 in annual contributions per beneficiary.

Open to nonresidents: No

Refund provisions: Penalty of 10% of earnings. No withdrawals in first 12 months.

Minimum/maximum contributions: $25 ($15 per payroll deduction) / $240,100

This TIAA-CREF plan invests in an age-based portfolio that starts out with a 80/20 ratio of stocks to bonds and shifts to a majority in bonds by the time a child is about 6 years old. Vermont also offers two supplemental options -- a 100% equity option and an interest income option. You must leave your savings in the account for at least one year; afterward the penalty on noneducation withdrawals is 10%. Expenses are reasonable at 0.8% of assets per year but higher than most TIAA-CREF plans.

State College Savings Plans