Utah 529 Plan

Utah 529 Plan

Utah 529 plan (college savings) utilizes the Utah State Treasurer’s fixed-income fund, Vanguard and Dimensional mutual funds in 4 different age-based options and 8 static portfolio options. The plan also offers the option of creating a customized age-based and/or static portfolio.

my529, formerly named Utah Educational Savings Plan (UESP), is a direct-sold 529 college savings plan available to residents of any state.

Rebrand UESP to my529

The decision to rebrand UESP involved considerable research, discussion, and development. The name my529 eliminates any confusion about the mission. 529 plans—investment vehicles designed for educational savings—help people save for university, college, or technical school. Funds can be used at any institution of higher education nationwide or abroad that accepts federal financial aid. my529 funds are not restricted to schools in Utah.

And now, you can use your my529 funds on K-12 tuition expenses.

Age Based Investment Options

Arlso eferred to as the enrollment-based option, this is an investment approach where your asset allocation is programmed to change over time. Accounts for young beneficiaries are invested aggressively and accounts for beneficiaries with college right around the corner are invested much more conservatively. In some 529 plans, the age-based option operates by automatically transferring your investment from one static portfolio to another at certain points in time.

State tax deduction or credit for contributions

Contributions to the Utah 529 plan of up to $1,960 in 2018 per beneficiary by an individual, and up to $3,920 in 2018 per beneficiary by a married couple filing jointly, are eligible for a 5% credit against Utah income tax. The maximum credit in 2018 is $98 per beneficiary for single taxpayers and $196 per beneficiary for joint filers. The credit limits are increased each year for inflation, but not decreased for deflation. Contributions to an account established after a beneficiary reaches age 19 are not eligible.

Source website: https://my529.org/