by Senator Ross Romero
District 7
September is National College Savings Month, and I wanted to make sure all the parents and families of future college students know about the Utah Educational Savings Plan (UESP). The importance of a college education cannot be overemphasized.
Did you know?
1. College graduates age 25 and over earn nearly twice as much as workers who only have a high school diploma.
2. Earnings from 529 plans are not taxed when used to pay for eligible college expenses.
3. Utah taxpayers receive a 5% tax credit on contributions up to $1,650 per beneficiary, equaling $82.50. If filing jointly, the 5% credit is applied to contributions up to $3,300 per beneficiary, equaling $165. The UESP 529 account must be established before the beneficiary’s 19th birthday to qualify for the credit.
4. No minimum investment is required to open or maintain a Utah Educational Savings Plan college savings account.
Did you know the UESP has been nationally recognized for its management?
“You will typically find the lowest costs among direct-sold 529s, such as Utah’s Educational Savings Plan, with expenses of 0.38% or less.”
Money Magazine
August 2007
“The Utah Educational Savings Plan, which is run by the state, remains a top choice due to a diverse lineup of portfolios and low annual expenses, which mostly range from 0.25% to 0.38% across its portfolios.”
Wall Street Journal
March 1, 2007
While I have provided examples from UESP’s program, there are many other 529 plans which you may want to consider. I personally have opened a UESP account for my son. I know how much my university experience and education have meant for me (including meeting my wife), and I wanted to make sure he also has those same opportunities.
If you would like more information about saving for college, please review www.collegesavings.org/didYouKnows.aspx.
If you would like more information about USEP or would like to open an account, please visit www.uesp.org.
