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Utah’s Official 529 Plan
The Utah Educational Savings Plan (UESP) was authorized by the Utah 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 and the Utah Higher Education Assistance Authority.
A trust fund established and sponsored by the State of Utah, UESP is the official and only 529 plan sponsored by the state. The Utah Educational Savings Plan is a “direct-sold” 529 plan, which means that you can set up an account and make contributions by contracting directly with UESP. You do not need a financial advisor to do this for you.
Looking for tax-free earnings? Contributions to UESP accounts are not deductible for federal income tax purposes; however, earnings on investments in UESP accounts grow federally tax-deferred. As long as the funds are used for qualified higher education expenses of the beneficiary at an eligible educational institution, disbursements from an account will not be subject to federal income tax.
Earnings are also exempt from Utah state taxes if used for qualified higher education expenses.
If you are not a Utah taxpayer, please see if the state where you live or pay taxes offers a 529 plan that provides tax or other benefits not otherwise available through UESP.
Investment Options
Utah Educational Savings Plan offers nine different investment options, including five age-based
options and four static options. Each option provides a different
type of investment and different level of risk for the UESP
account. The account owner must select one option per account
when completing the Account Agreement form. All future contributions
to the account will be invested according to the investment
option indicated by the account owner when the account is opened.
However, if you decide you want to change your investment option
and you can do so in compliance with the rules of UESP,
then simply submit an Option Change
form.1
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