Program Description


Fee-free Savings and Tax-free Earnings for Utahns

Fee-free Savings
UESP offers 12 investment options. Utah taxpayers/residents who invest in Option 1 (the Utah Public Treasurer’s Investment Fund) are not charged annual Administrative or Maintenance Fees. If you are a Utah resident account owner, the annual Administrative Maintenance Fee is waived.

Initial investments or mandatory ongoing contributions are not required—so you can open your account with a zero balance and start saving when it’s right for you.

What does saving with UESP cost a Utah resident?
Minimum Balance Requirement
None
Minimum Contribution Requirement
None
Enrollment Fee
$0
Administrative Maintenance Fee
$0
Asset Fees for Investment Option 1
0.00%
Asset Fees for Investment Options 2-11
0.18%-0.35%
Asset Fees for Investment Option 12*
0.22%-0.67%

*The underlying fund expense for Option 12, Customized Allocation, will vary, and thus the total annual asset-based fee will vary, based on the underlying investment allocation chosen by you.

Tax-free Earnings
While your UESP funds grow, you owe no federal or Utah state taxes on the earnings. And when you withdraw funds to use for qualified higher education expenses, no Utah state or federal income taxes are assessed. Qualified higher education expenses include tuition, books, fees, certain room and board costs, and any other expenses required to attend college.

© 2010 Utah Educational Savings Plan, 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. 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.

“Fees are rock-bottom . . . making it one of the cheapest plans in the country.”

Morningstar Investor Services
April 2009