General Plan Questions

529 plans are tax-advantaged savings vehicles designed to encourage individuals to begin to save for the costs of higher education. They are authorized by Section 529 of the Internal Revenue Code.

The Utah Educational Savings Plan was established by the Utah State Legislature and is designed to comply with Section 529 of the Internal Revenue Code. UESP is administered and managed by the Utah State Board of Regents acting in its capacity as the Utah Higher Education Assistance Authority.

A nonprofit trust fund, UESP is the official and only 529 plan sponsored by the State of Utah. It is a direct-sold 529 plan, which means you can set up an account and make contributions by dealing directly with UESP.

You don't need to be a Utah resident or taxpayer to open a UESP account—you can invest in any 529 plan and still enjoy the same federal tax benefits. You should determine if the state in which you or your beneficiary pay taxes or live offers a 529 plan that provides state tax or other benefits not offered to you by investing in UESP. Forty-eight states and the District of Columbia currently offer at least one 529 plan.

Earnings on your account grow tax deferred from federal and Utah state income taxes while you save. Withdrawals are exempt from federal and Utah state income taxes when used for qualified higher education expenses. Utah taxpayers have additional state income tax benefits. For additional information, click here for Utah resident tax benefits.

Yes. The FDIC-insured savings account offered through Zions First National Bank carries FDIC insurance up to the maximum amount set by law, which is $250,000. This savings account is the sole underlying investment for one of UESP's static investment options, FDIC-Insured Savings. Selecting FDIC-Insured Savings as your investment option for an account would give you FDIC insurance up to $250,000. (Some limitations might apply if you hold other accounts at Zions First National Bank.)

Additionally, some age-based accounts allocate funds to the FDIC-insured savings account as the beneficiary ages or enrolls in college. For example, if you invest in the Age-Based Moderate investment option for a beneficiary who is 13 years old, 15% of the account funds are allocated to the savings account and thus that portion is insured by the FDIC.

Read the UESP Program Description to learn more.

Investments in UESP accounts are subject to the market performance of the underlying investments. There are no guarantees that accounts will increase in value, not decrease in value, or achieve any rate of return. You could lose money, including the principal you invest, or not make money by investing in UESP.

No. Neither the State of Utah nor UESP make any guarantees concerning the rate of return or preservation of your contributions to UESP accounts. Additionally, investments are not guaranteed by the Utah State Board of Regents, the Utah Higher Education Assistance Authority, the FDIC (except as noted below), or any other government agency. Account owners assume all the investment risks associated with these kinds of investments, including loss of principal.

Subject to the application of Zions First National Bank and FDIC rules and regulations to each account owner, funds in the underlying FDIC-insured savings account will retain their value, whether in the FDIC-Insured Savings investment option or when allocated to portions of the Age-Based Aggressive Growth, Age-Based Growth, Age-Based Moderate, Age-Based Conservative, Customized Age-Based, or Customized Static investment options (if, in the customized investment options, the FDIC-insured savings account is selected as an underlying investment).

Please read the UESP Program Description for more information on how FDIC insurance would apply to your investments.