Utah Educational Savings Plan

Opening Your Account

When can I open a Utah Educational Savings Plan (UESP) account?

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You can open a UESP account anytime. If opened manually, UESP must receive your paperwork by the last business day of the year in order to receive credit for a contribution in that particular tax year.

 

How do I open an account?

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You can open an account online or by completing an Individual Account Agreement. Account Agreements can be submitted in one of the following ways:

  • Fax to 800.214.2956
  • Mail to UESP at PO Box 145100, Salt Lake City, UT 84114-5100
  • Hand deliver or send overnight to the Board of Regents Building, Gateway 2,
    60 South 400 West, Salt Lake City, UT 84101-1284
 

What is the difference between an individual, institutional, and UGMA/UTMA custodial account?

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Individual account. An individual account is an account opened and controlled by an adult for the benefit of a beneficiary. This is the most common type.

Institutional account. An institutional account is opened and owned by an institution such as a trust, corporation, or other organization.

UGMA/UTMA Custodial account. A UGMA/UTMA Custodial account may only be established with liquidated funds from an existing Uniform Gifts to Minors Act (UGMA)/ Uniform Transfers to Minors Act (UTMA) custodial account. The beneficiary is the irrevocable owner of the account. A custodian (agent) will manage the account for the beneficiary until the beneficiary reaches the age of majority in the state in which the UGMA/UTMA account was established.

For complete definitions and descriptions of the account types, see the Program Participation Information section of the UESP Program Description.

 
 
 

Important Legal Notice

You 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 here.

FDIC Insurance. Except for the underlying investment specified below, investments in UESP are not insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance, up to applicable limits, is provided for the FDIC-insured accounts held in trust by UESP at Sallie Mae Bank and U.S. Bank National Association (U.S. Bank) (collectively 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). Money in the FDIC-insured accounts is 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 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 the FDIC-insured account at each Bank plus (2) the value of other accounts held (if any) at each Bank, as determined by the Banks and by FDIC regulations.

No Other Insurance and No Guarantees. Investments in UESP are neither 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 UESP 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 the rules and regulations of the Banks and the FDIC to each account owner, money in the FDIC-insured accounts will retain its value, whether in the FDIC-Insured investment option or when allocated to portions of another investment option that have the FDIC-insured accounts included as an underlying investment.

Non-Utah Taxpayers and Residents. You should determine whether the state in which you or your beneficiary pay taxes or live offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in UESP. You should consider such state tax treatment and benefits, if any, before investing in UESP.