Utah Educational Savings Plan

Definitions

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A college savings plan created pursuant to Section 529 of the Internal Revenue Code of 1986, as amended.

The document submitted to UESP to open an account. Each UESP account type has a separate account agreement:

  • Individual Account Agreement (form 100) for an individual account
  • Institutional Account Agreement (form 102) for an institutional account
  • UGMA/UTMA Custodial Account Agreement (form 104) for a UGMA/UTMA custodial account
  • Scholarship Account Agreement (form 106) for a scholarship account
The person, company, trust, or other organization listed as the owner who is legally responsible for the account. For a UGMA/UTMA custodial account, the beneficiary is also the account owner.
An investment option where the allocation of money in the underlying investments depend on the age of the beneficiary.

The person authorized to act in the capacity of the account owner.

  • For an individual account, the account owner is also the agent.
  • For an institutional account, the authorized trustee or duly authorized officer of the institution is the agent.
  • For a UGMA/UTMA custodial account, the custodian is normally the agent.
A fee assessed against the total funds in an account as a percentage of the account value.
The person specified on the Account Agreement for whom the account is being opened and whose qualified higher education expenses are expected to be paid from the account.
Contributed money that has cleared the contributor’s bank. Collected money is available for withdrawal or an internal fund transfer to another UESP account. See also Uncollected Money.
The Customized Age-Based and Customized Static investment options. An account owner/agent who invests in a customized investment option takes the full responsibility to design their own customized asset allocation from the available underlying investments. See also Age-Based Investment Option and Static Investment Option.
A qualified withdrawal that is deposited directly into an account owner’s or beneficiary’s specified checking or savings account at a bank, savings and loan, or credit union.
An institution described in Section 481 of the Higher Education Act of 1965 (20 U.S.C. Sec. 1088) that is eligible to participate in a program under Title IV of such Act. An eligible educational institution is usually any accredited college, university, or trade school in the United States or abroad that participates in federal financial aid programs for students.
An institution created by the federal government in 1933 that insures checking, savings, and other types of deposit accounts held at savings banks and savings and loan associations. It does not insure securities, mutual funds, or other similar types of investments. Contributions to and earnings on the FDIC-insured accounts are insured by the FDIC on a pass-through basis to each account owner at each Bank up to the maximum amount set by federal law, which is $250,000. The FDIC-insured accounts are held in trust by UESP at Sallie Mae Bank and U.S. Bank (Banks). Contributions to and earnings on the FDIC-insured accounts are allocated between the Banks according to the following percentages: Sallie Mae Bank (90 percent) and U.S. Bank (10 percent).
A person who has been granted access by an account owner/agent to view certain online information for a specific account. The interested party cannot make changes to the account or initiate transactions.
An amount withdrawn from one UESP account and transferred to another UESP account with a beneficiary who is a member of the family of the preceding beneficiary.
The financial strategy selected by the account owner/agent that determines how contributions to the account will be invested.
A change requested by the account owner/agent to move the allocation of account money of an existing account from one investment option to another. Transferring money (making a full-balance or partial-balance transfer) between two accounts if both the account owner/agent and the beneficiary are the same is viewed by the Internal Revenue Service as an investment option change. An investment option change may be made once per calendar year for the same beneficiary.
Designates an entity or individual as an account owner/agent’s attorney-in-fact, agent, and authorized representative to access UESP account(s) and to perform specific transactions. The account owner/agent continues to control the account and may perform any of the actions that the authorized representative has permission to perform.
  • The father or mother, or ancestor of either
  • a child, or descendent of a child
  • a stepfather or stepmother
  • a stepson or stepdaughter
  • a brother, sister, stepbrother, or stepsister, a half-brother or half-sister
  • a brother or sister of the father or mother
  • a brother-in-law, sister-in-law, son-in-law, daughter-in-law, father-in-law, or mother-in-law
  • a son or daughter of a brother or sister
  • a spouse of the beneficiary or any of the other individuals mentioned above
  • or a first cousin

A legally adopted child of an individual is treated as the child of such individual.

An asset-based fee charged against an investment and netted against the performance of the investment, usually by a mutual fund company.
A pool of money managed by the Utah state treasurer in short-term investments with an average life of less than 90 days. Investments are governed by the Money Management Act of Utah.
  • Tuition, fees, books, supplies, and equipment required for the enrollment or attendance of a designated beneficiary at an eligible educational institution.
  • Room and board for students who are enrolled at least half-time. Reasonable costs incurred for room and board while attending an eligible educational institution may not exceed the allowance for room and board included in the cost of attendance as determined by the eligible educational institution or, if greater, the actual invoice amount a student residing in housing owned or operated by the eligible educational institution is charged for room and board costs.
  • Expenses for special needs services in the case of a special needs beneficiary that are incurred in connection with such enrollment or attendance.
  • Computers are not qualified expenses unless specifically required by the class.
  • Fees for college preparation or placement tests are not qualified higher education expenses.
The process of moving an account’s money into new underlying investment allocations based on the beneficiary’s age or college enrollment status.
The process of bringing an account’s underlying investments back into a targeted or stated allocation.
An amount withdrawn from a qualified tuition program and deposited in another qualified tuition program within 60 calendar days for the benefit of either the same beneficiary or a member of the preceding beneficiary’s family.
An investment option that maintains the same underlying investment allocation for all contributions throughout the life of the account.
An individual or trust that will assume all of the account owner’s rights and obligations for an account upon the death of the account owner.
Liquidated funds from another savings vehicle (such as a Coverdell Education Savings Account [ESA], a Uniform Gifts to Minors Act/Uniform Transfers to Minors Act [UGMA/UTMA] account, or a U.S. Savings Bond) deposited into a UESP account. See also Internal Transfer.
Monday through Friday, except for federal, State of Utah, and Utah State Board of Regents holidays.
8:00 a.m. to 5:00 p.m., Mountain Time, on any UESP day of operation. A request or communication received after the hours of operation will be processed on the next day of operation.
Contributed money that has not cleared the contributor’s bank, which may take as long as seven (7) business days for a check and four (4) business days for a one-time or recurring contribution. See also Collected Money.
Based upon the investment selected for each account, UESP invests the money in a combination of Vanguard and Dimensional mutual funds, the PTIF, and the FDIC-insured accounts held in trust at Sallie Mae Bank and U.S. Bank. These are referred to as the “underlying funds” or “underlying investments.”
A transfer from a UGMA or UTMA account where property was gifted/transferred to a minor without establishing a trust. The account places funds under the control of a person who is not the beneficial owner, but is an adult who will manage the funds until the child reaches the age when control passes to the child.
Used to determine the amount of a transaction for a UESP account. It will be equivalent to the closing price of a share of the respective underlying investment(s) in the account on the same business day that the transaction is completed by UESP, such as the day a contribution is made to or a withdrawal is taken from the account. The closing price of a share of the underlying investment is determined after the close of market trading on that day (normally 4:00 p.m., Eastern Time).
The equivalent number of shares of an underlying investment that is held by UESP for the benefit of an account. An account owner will own UESP units for each underlying fund in which UESP has invested their money.
Money withdrawn from an account and sent to a payee in the form of a check or deposited as an electronic withdrawal directly into an account owner’s or beneficiary’s specified checking or savings account at a bank, savings and loan, or credit union.