Assets at Utah Educational Savings Plan pass $10 billion

The Utah Educational Savings Plan announced that its assets under management topped $10 billion, a milestone capping 20 years as Utah’s official and only tax-advantaged 529 college savings plan.

The path to $10 billion began in 1996, when the Utah Legislature established UESP to help families save for higher education. In 2005, assets reached $1 billion in roughly 67,000 accounts. Today, UESP administers more than 330,000 accounts for college savers. Account owners live in all corners of the United States.

UESP is rapidly growing and is the sixth-largest 529 plan in the nation measured by market share, according to investment research firm Morningstar Inc. UESP is also the biggest self-managed plan in the 529 marketplace, according to Morningstar.

“Assets under management is an important measure of consumer acceptance,” said Lynne Ward, UESP Executive Director. “Families across the country see the benefit of saving for higher education through UESP, which offers numerous flexible investment options and fees that are among the lowest in the 529 industry.”

While helping children reach their educational goals, a UESP account also provides valuable tax benefits.

  • Earnings accumulate tax-free.
  • Earnings withdrawn from UESP are exempt from federal and Utah state income tax if used to pay for qualified higher education expenses at a college, university, or vocational school that participates in federal financial aid programs for students in the United States or abroad.
  • Utah taxpayers may qualify for a Utah state income tax credit or deduction for contributions to UESP accounts, up to certain limits.