Utah Educational Savings Plan - About Us

Flexibility

Anyone 18 years of age or older can open a Utah Educational Savings Plan (UESP) 529 account. Parents can save for children, grandparents can save for grandchildren, and uncles and aunts can save for nieces and nephews. You don't even have to be related to the beneficiary you select.

There are no income restrictions on the account owner or the contributor. Once you open the account, you can transfer the account or a portion of the account funds to another member of the beneficiary’s family. You can use the money in your beneficiary’s account at any eligible higher education institution that accepts federal financial aid for students—from the local community college to the Ivy League.

What if Circumstances Change?

Did your son or daughter decide not to attend college? Did a family emergency come up? Or did you just change your mind? You can transfer the account or a portion of the account funds to another member of the family of the account beneficiary. You can also withdraw your funds anytime.

If the money is used for anything but qualified higher education expenses, in most cases you’ll be required to pay federal and state income tax and an additional 10% federal penalty tax on the earnings. Utah taxpayers may be required to recapture any Utah state income tax credit or deduction previously claimed. In cases of death, disability, receipt of a scholarship (up to the amount of the scholarship), or attendance at a military academy, the earnings portion will be subject to federal and state income tax, but you will not have to pay the additional 10% federal penalty tax.

Variety of Investment Options

UESP offers 14 investment options; each utilizes a distinct investment strategy.

  • Four age-based investment options automatically reallocate account funds to be weighted less in equity funds and more in fixed-income funds and/or the FDIC-insured savings account as the beneficiary ages.
  • Eight static investment options will remain in the stated allocation unless you request an investment option change.
  • Two customized investment options are determined and customized by you among the available underlying investments.