Plan Basics

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 adviser or broker 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, earnings 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 or your beneficiary live or pay taxes offers a 529 plan that provides tax or other benefits not otherwise available to you through UESP.

Investment Options
Utah Educational Savings Plan offers eleven different investment options, including five age-based options and six static options. Each option provides a different type of investment and different level of risk for the UESP account. Select one option per account when enrolling online or completing the Account Agreement form. All future contributions to the account will be invested according to the investment option you indicate 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 Investment Option Change form.1

1 Account owners can change investment options on an existing account for the same beneficiary twice during the calendar year 2009. Other limitations apply. Please see the Program Description for more details.

© 2009 Utah State Board of Regents, all rights reserved.
The terms Utah Educational Savings Plan and UESP are registered service marks.

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 through December 31, 2013, and $100,000 thereafter. 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, 7, 8, and 9.

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.