Utah Educational Savings Plan

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Morningstar Ranks UESP as a Top-Five Choice
"Utah's 529 plan has long been a favorite of ours and remains a strong choice..."

Start Saving Today!
It is never too early to start saving for the college education
of your children or grandchildren. Now is an ideal time to start.

The Utah Educational Savings Plan (UESP) is a simple, sound plan to stretch your child's educational dollars and provide some wonderful tax incentives.

Why a 529 plan? A 529 savings plan encourages saving for college. And saving for college means paying for college!

How will you pay for college? Let UESP be your online savings account for college.

Open an Account
Opening a UESP account is fast and easy. It will take approximately 10 minutes. No initial or recurring contribution schedules are required.

Make a Contribution
Contributions to your UESP account can be made online, by check, or by automated withdrawals from your checking or savings account.

Investment Options
With eleven investment options, UESP lets you choose your own degree of risk and potential reward. Choose from five age-based and six static options.

UESP and the Financial Market

The past months have shown that predicting the direction of the financial markets is difficult. However, we at UESP continue to believe that investing in higher education remains a valuable and important goal. As was recently stated by Vanguard, "the uncertainty with respect to the timing and magnitude of a future stock market rebound underscores the time-tested benefit of maintaining a strategic and well-diversified portfolio allocation.” UESP is committed to providing an array of investment choices to satisfy the investing strategies of each of our account owners. We urge you to review the investment options described in our Program Description and to consult with your financial adviser if you have any questions about the investment choices we offer to you. In addition, UESP will continue to provide you with detailed information about your account and we will remain committed to providing you the best service possible during these uncertain times.

A UESP Overview

Tax Advantages
Earnings grow free from federal and Utah state income taxes if used for qualified higher education expenses.

State Income Tax Advantages
Utah taxpayers receive a five percent tax credit on contributions up to $1,740 per beneficiary, equaling $87.00. If filing jointly, the five percent credit is applied to contributions up to $3,480 per beneficiary, equaling $174.00. The UESP 529 account must be established before the beneficiary’s 19th birthday to qualify for the credit.

Minimum Investment
No minimum investment is required to open or maintain a Utah Educational Savings Plan college savings account.

Aggregate Maximum
Savings Balance: $346,500

Annual Administrative Fees
The Maintenance Fee is $3 per $1,000 up to an account balance of $5,000 not to exceed $15 annually. If the account balance at the end of each month is at least $5,000, your account will be charged $1.25 for that month. If the account balance at the end of the month is less than $5,000, the fee will be 0.025% of the account balance for that month. This fee is assessed on an account's balance on the last business day of each month. This fee is waived for Utah residents.

The Asset Fee is 0.22% annually assessed on a monthly basis at the rate of 0.0183% on an account's balance on the last business day of each month. This fee is not assessed on Utah residents invested in Option 1-Public Treasurer's Investment Fund.

Investment Manager
Utah State Board of Regents and
Utah Higher Education Assistance Authority

Investment Options
Five age-based options
Six static options

In the News

IRS Allows more Investment Flexibility in 2009
Great news! The IRS recently issued Notice 2009-1, which allows participants in 529 plans to change their investment option twice during calendar year 2009 for a beneficiary. Importantly, this change is only effective for 2009.

» May 29—"529 Day"
Making College Savings a Priority in Utah.
UESP to match contributions up to $20 for first time Utah resident account owners.

» Morningstar Ranks UESP as a Top-Five Choice
Today UESP was ranked as one of the top five 529 college savings plans in the country.

» New Investment Option
UESP announces an FDIC-insured savings option, Option 11: FDIC-Insured Savings.

» UESP Fee Reductions
UESP's rock bottom fees just got even lower.

» Current UESP Newsletter
Download the current issue to stay up to date.

New FDIC-Insured Option
UESP announces a new FDIC-Insured Investment. Option 11:FDIC-Insured Savings.

UESP gift notice available to download.
Contributing to your child's or grandchild's UESP account may be the best gift you can give.
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Investors should read the Program Description and consider all investment objectives, risks, charges, and expenses before investing. The Program Description is available for download on the Web or a hard copy can be mailed to you by requesting it online from this Web site.

FDIC Insurance. Except for the underlying investment specified below, investments in UESP are not insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance is provided for the FDIC-insured savings account held in trust by UESP at Zions First National Bank (Bank). Funds in the savings account are insured by the FDIC on a pass-through basis to each account owner up to the maximum amount set by federal law—currently $250,000 through December 31, 2013, and $100,000 thereafter. The amount of FDIC insurance provided to an account owner is based on the total of (1) the value of an account owner’s investment in UESP’s FDIC-insured savings account plus (2) the value of other accounts held (if any) at the Bank, as determined by the Bank and by FDIC regulations.

No Other Insurance and No Guarantees. Investments in UESP are not insured nor guaranteed by the State of Utah, UESP, the Utah State Board of Regents, the Utah Higher Education Assistance Authority, other state agencies, federal government agencies (except to the extent noted above regarding FDIC insurance ), or any employees or directors of any such entities. Units in UESP have not been registered with the United States Securities and Exchange Commission or with any state securities commission.

Account Value. The value of your UESP account may vary depending on market conditions and the performance of the investment option you select. It could be more or less than the amount you contribute; in short, your investment could lose value. However, subject to the application of Bank and FDIC rules and regulations to each account owner, funds in UESP’s FDIC-insured savings account will retain their value, whether in Option 11 or when allocated to portions of Options 2, 7, 8, and 9.

Non-Utah taxpayers and residents should determine whether the state in which they or their beneficiary live or pay taxes offers a 529 plan that provides state tax or other benefits not otherwise available to them through UESP.