The Vermont Student Assistance Corp. has a timely idea to get parents thinking about saving for college early.
In a nod to the calendar, the agency will provide $100 deposits into new 529 college savings accounts opened for babies born in Vermont on May 29.
In addition, one winner of any age will be chosen for a prize of $529 deposited into a college savings account in an online drawing at vsac.org and vheip.org.
The Vermont Association of Hospitals and Health Systems joins VSAC, which administers Vermont’s 529 college savings plan, in the May 29 promotions.
A 529 account is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code, which created these types of savings plans in 1996.
Vermont’s 529 college savings plan is called the Vermont Higher Education Investment Plan and accounts may be opened with a deposit of as little ast $25.
VSAC President and chief executive Scott Giles said he wants to encourage parents to open accounts. “The ideal time to begin saving is between birth and age 5 in order to allow your investment to build over time,” he said.