Utah Educational Savings Plan - Tax Considerations

FAQs

Payroll Deduction

How do I set up payroll deductions with the Utah Educational Savings Plan?
Can I contribute through payroll deduction to another UESP account that I do not own?
Are payroll deductions pre-tax or after-tax?
If I enroll in payroll deduction, will the automated contributions I already make to UESP from my checking/savings account be stopped automatically?
How do I stop or make changes to my payroll deduction?
I recently changed the amount of my deduction. Why hasn't that taken effect yet?
When will the money post to my UESP account?

How do I set up payroll deductions with the Utah Educational Savings Plan?
You must have an account with UESP before setting up payroll deduction. You can open a new account online or by completing an Account Agreement and mailing it to UESP, P.O. Box 145100,
Salt Lake City, UT, 84114-5100, or fax it to 800.214.2956.

Enroll in payroll deduction by logging into your UESP account online or by filling out the Payroll Deduction Agreement available online. You will need to provide the following information:

The total amount to be deducted from your paycheck each pay period
Your employer’s name
The dollar amount or percent of your deduction to go to each UESP account each pay period

Once you agree to the terms, you will be provided a routing and bank account number to give to your employer. To activate your deductions, print the confirmation page and provide the information to your employer. You or your employer will need to add this as a new direct deposit.

Can I contribute through payroll deduction to another UESP account that I do not own?
Yes. However, you must be a UESP account owner on another account. To set up payroll deduction, follow the steps below.

Step 1: Log into your UESP account online
Step 2: Select Payroll Deduction
Step 3: Click on Add a Contribution to Another Account
Step 4: Enter the beneficiary’s account number and birthday, and complete the Payroll Deduction information. You will need to provide the following information:

Your total amount to be deducted from your paycheck each pay period
Your employer’s name
The dollar amount or percent of your deduction to go to each UESP account each pay period

Anyone can contribute to an established UESP account; however, once the funds are contributed, they are under the control of the account owner, not the contributor. Additionally, Utah taxpayers may not claim Utah state tax benefits for contributions made to an account for which they are not the account owner. UESP does not record or retain the information of non-account owner/agent contributors.

Are payroll deductions pre-tax or after-tax?
All payroll deductions to UESP accounts are after-tax contributions.

If I enroll in payroll deduction, will the automated contributions I already make to UESP from my checking/savings account be stopped automatically?
No. Establishing contributions by payroll deduction does not stop existing automated contributions. You can stop other automated contributions to UESP online or submit the Automated Contributions Authorization/Change form.

How do I stop or make changes to my payroll deduction?
You can make changes to your payroll deduction by logging into your UESP account online and clicking Setup Payroll Now. You will be taken to your last saved payroll selections. You can change your total payroll deduction, employer name, and the dollar amount or percentage of the deduction that goes to each UESP account. Changes to your amount or cancellation of your deduction will not take place until you print and give your employer the confirmation page and your employer authorizes it.

Please be aware that depending on the timing of your request, the change may not occur until the next pay period.

I recently changed the amount of my deduction. Why hasn't that taken effect yet?
Your deducted amount might differ because you may have requested a change to your payroll deduction online but have not yet submitted the confirmation page to your employer to make the change. Please check with your human resources or payroll department for more information.

When will the money post to my UESP account?
Payroll deductions to UESP account(s) are normally posted within two business days of UESP receiving the funds from your employer. You can verify investment of the funds by accessing your UESP account online.

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.

FDIC Insurance. Except for the underlying investment specified below, investments in UESP are not insured by the Federal Deposit Insurance Corporation (FDIC). FDIC insurance is provided for the FDIC-insured savings account held in trust by UESP at Zions First National Bank (Bank). Funds in the savings account are insured by the FDIC on a pass-through basis to each account owner up to the maximum amount set by federal law—currently $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 UESP’s FDIC-insured savings account plus (2) the value of other accounts held (if any) at the Bank, as determined by the Bank and by FDIC regulations.

No Other Insurance and No Guarantees. Investments in UESP are not 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 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 Bank and FDIC rules and regulations to each account owner, funds in UESP’s FDIC-insured savings account will retain their value, whether in Option 11, or when allocated to portions of Options 2, 3, 7, 8, 9, or 12 (if the FDIC-insured savings account is selected 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.

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

Click here to download a pdf.
Click here to request a mailed copy.