Utah Educational Savings Plan: A Great Gift

Amanda Covington, Director of Communications for the Utah Educational Savings Plan


• The holiday season is near. There is no better gift than contributing to a child’s UESP account. It is an investment in your child’s or grandchild’s future.

• UESP account owners receive a Utah state tax deduction or credit for contributions to a UESP account. The deadline for contributions you want applied to the 2007 calendar year must be received at the Utah Educational Savings Plan office before 5:00 p.m. Mountain Standard Time, Monday, December 31, 2007.

• The 2007 Utah state income tax deduction for contributions is up to $1,620 ($3,240 if filing jointly) per beneficiary, or the Utah state tax credit is up to $87 ($173 if filing jointly) per beneficiary. To receive the deduction or credit, the account must be set-up before the beneficiary turns 19 years old.

Background – The Utah Educational Savings Plan

• is the official 529 college savings plan sponsored by the state of Utah.

• is a “direct-sold” 529 plan, which means individuals can set up an account and make contributions by contracting directly with UESP.

• now holds more than 100,000 accounts valued at more than $2.4 billion.

• 23 percent of the accounts are owned by Utah residents.

• 20 percent of the accounts are owned by grandparents.

• is rated one of the top 529 plans in the nation – receiving local and national attention from media outlets, including the Wall Street Journal, Morningstar, and Money magazine, for its low fees and range of investment options.

Plan Features

• Utah’s 529 college savings plan makes it easy to save. There are no enrollment fees and no minimum contributions. You can contribute as much or as little as you want, whenever you want.

• If funds are used for qualified higher education expenses, earnings from a Utah Educational Savings Plan account are tax-free, under both Utah and Federal tax laws.

• Qualified higher education expenses include tuition, books, fees, supplies, room and board, and items required for enrollment or attendance at an eligible institution.

• Account owners can choose from nine different investment options, including five age-based options and four static options.


Want to know more about the Utah Educational Savings Plan. Go online at www.uesp.org or call toll free at (800) 418-2551.

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