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 can even save for yourself or a spouse. Once you open the account, you can transfer the account to another member of the beneficiary’s family. You can use the money in your beneficiary’s account at any eligible educational institution he or she is accepted to attend—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 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 12 investment options consisting of various allocations of mutual funds managed by Vanguard, the FDIC-insured savings account, and the Public Treasurers' Investment Fund (PTIF), including four age-based, six static, and two customized investment options.

Maximum Aggregate Contributions

UESP is a valuable tool in any investment strategy. There are no income restrictions on the account owner or the contributor, and contributions can be made until all UESP balances for the same beneficiary reach $397,000. The account balances may exceed this amount as a result of market performance.