Utah Educational Savings Plan - Opening and Contributing to Your Account

FAQ's

Opening and Contributing to Your Account

When can I open a Utah Educational Savings Plan (UESP) account?
How do I open an account?
What is the difference between an individual, custodial, and institutional account?
Can I fund an account with UGMA/UTMA monies?
How do I make contributions to UESP?
Is there a minimum contribution requirement?
Is there a maximum contribution limit?
Is there a limit on how often I can contribute?

When can I open a Utah Educational Savings Plan (UESP) account?
You can open a UESP account any time. UESP must receive your paperwork by the last business day of the year that we are open in order to receive credit for a contribution in that particular year.

How do I open an account?
You can open an account by online from this website or by completing an Account Agreement. Account Agreements can be faxed to 800.214.2956, mailed to UESP at PO Box 145100, Salt Lake City, UT, 84114-5100, or they can be hand-delivered to Board of Regents Building, The Gateway, 60 South 400 West, Salt Lake City, Utah, 84101-1284.

You can make your initial contribution by check (in US dollars only), automatic withdrawal (ACH) from a checking or savings account, online at this Web site, or by transfer from another 529 plan, an UGMA/UTMA account, or with the proceeds of redeemed qualified US savings bonds.

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

Individual account. An individual account is an account owned by a person for the benefit of a beneficiary.
Custodial account. A custodial account is established with money transferred from a UGMA/UTMA account. The beneficiary is the irrevocable owner of the account. A custodian 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.
Institutional account. An institutional account is established by an entity—such as family trust or corporation—for the benefit of a beneficiary.

Can I fund an account with UGMA/UTMA monies?
You can fund a UESP account with monies from an UGMA/UTMA. However, you must liquidate assets in the UGMA/UTMA to do so, as you cannot open a 529 account with securities or other investment instruments. Also, when you open the UESP account, it will be treated as a custodial UESP account, which means that the beneficiary is in fact the account owner, with a custodian acting on his behalf until he reaches the age of majority in the state in which the UGMA/UTMA was created. Additionally, the beneficiary cannot be changed on these accounts (until the beneficiary reaches the age of majority and acts to do so) and monies can only be disbursed for the benefit of the beneficiary.

How do I make contributions to UESP?
Contributions can be made by check (in US dollars only), automatic withdrawals (ACH) from checking or savings accounts, online at this Web site, or through payroll deduction with participating employers. Checks should be made payable to UESP, and must include the child’s name and UESP account number on the front. Mail contributions to UESP, PO Box 145100, Salt Lake City, UT, 84114-5100.

Is there a minimum contribution requirement?
UESP has no minimum initial or ongoing contribution requirement.

Is there a maximum contribution limit?
UESP will accept contributions until all UESP account balances for the same beneficiary reach $330,000. However, balances may exceed this amount as a result of market performance. This amount may be adjusted by UESP in the future based on the maximum estimated cost of qualified higher education expenses for four years of undergraduate plus three years of graduate school at the highest cost public or private institution authorized under the Plan. Contributions in excess of this maximum will be returned to the contributor.

Is there a limit on how often I can contribute?
You may contribute to an account as often or as seldom as you like. You may invest as much as $60,000 ($120,000 per married couple if filing jointly) in a single year without incurring a federal gift tax, but you must treat the gift as if it were made ratably over five years.

Investors 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 from this Web site.

Investments are not guaranteed by UESP, the Board of Regents, the UHEAA, the FDIC, or any other state or federal government agency. Your investment may lose value.

Investors who are not Utah taxpayers should determine whether the state in which they or their beneficiary reside or pay taxes offers a 529 plan, and if so, whether that plan offers state tax or other benefits not available through UESP.

For more details about how our plan works download a copy of our Program Description.

Click here to download.
Click here to request a copy be sent to you