Glossary

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Family Member
A "member of the family" of a Beneficiary is a person related to that Beneficiary as follows: (i) a son or daughter, or a descendant of either; (ii) a stepson or stepdaughter; (iii) a brother, sister, stepbrother or stepsister; (iv) the father or mother, or an ancestor of either; (v) a stepfather or stepmother; (vi) a son or daughter of a brother or sister; (vii) a brother or sister of the father or mother; (viii) a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law; (ix) the spouse of the Beneficiary or of any of the other foregoing individuals; or (x) a first cousin of the Beneficiary. For this purpose, a child includes a legally adopted child and a brother or sister includes a half-brother or half-sister. 

Individual Account Application
This is the account application typically used by an individual (parent, grandparent, family member or friend). Download the Individual Account (PDF, 61KB) application.

IRA
Individual Retirement Account. A tax-deferred or tax-free retirement account established by an individual that permits the individual to set aside up to a certain amount per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% IRS penalty) or, in the case of a Roth IRA, are tax-free on withdrawal.

• Bank Draft - A check drawn by the bank or depository institution against funds deposited into its' account at another bank that authorizes the second bank to make payment to the individual named on the draft.  The bank debits the funds for a bankers draft from an account owner's account and produces the draft.
• Cashiers' Check - A check issued by a bank on its own account in the amount paid to the bank by the purchaser.  The check is usually made payable to a third party, and specifies the name of the payee, as well as the party purchasing the check (usually referred to on the check as the remitter).  Cashier's checks are signed by the bank cashier or bank officer.
  
  Cashier's checks are received as cash which does not allow identification of the contributor; thus the restriction as an acceptable method of payment or contribution to a VHEIP account.  Cashier's checks are commonly used when the purchaser or payee would like/requires the payment to be credited as if it is cash.
• Official Check/Official Bank Check - A check drawn on a bank or depository institution representing guaranteed funds in the amount debited from an account owner's account.  The check is usually made payable to a third party, and often specifies the name of the person from whose account the funds were withdrawn. 
• Tellers' Check - Any check issued by a bank or depository institution and drawn on another bank or depository institution.  The bank debits the funds for a teller's check from an account owner's account and produces the check.  The check is usually made payable to a third party, and usually specifies the name of the person from whose account the funds were withdrawn (i.e. the remitter). 

Plan
The plan is Vermont Higher Education Investment Plan (VHEIP).

Program Manager
The Program Manager is the person or entity that the State engages to provide administrative and other services for the Program. The VHEIP Program Manager is TIAA-CREF Tuition Financing, Inc. (TFI).

Qualified Higher Education Expenses
Qualified higher education expenses include tuition, fees, and the cost of books, supplies, and equipment required for the enrollment and attendance of the Beneficiary at an eligible educational institution and, certain room and board expenses. Qualified Higher Education Expenses also include certain additional and enrollment and attendant costs of a Beneficiary who is a special needs beneficiary in connection with the Beneficiary's enrollment or attendance at an eligible institution. For this purpose, an eligible educational institution generally includes accredited postsecondary educational institutions offering credit toward a bachelor's degree, an associate's degree, a graduate-level degree or professional degree, or another recognized postsecondary credential.

Rollover
A tax-free reinvestment from one qualified plan to another within a specific time frame, usually 60 days.

You are permitted to transfer funds from another 529 college savings plan to an account in VHEIP for the same beneficiary once within a 12-month period without incurring federal income tax. The 529 college savings plan from which you are transferring funds may be subject to differences in features, costs and surrender charges. You should consult with your tax advisor or the other 529 college savings plan. State and local taxes may apply.

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