my529 honored with top industry rating for 14th straight year
Utah’s plan earns Gold rating from Morningstar investment research firm
(Salt Lake City) As Utah’s 529 educational savings plan, my529’s mission is to help families put aside funds for future qualified education expenses. So, it’s with pride that we announce that my529 is again one of the top 529 plans in the country, named today by Morningstar as one of five plans to receive the Analyst Rating™ of Gold for 2024.
my529 has earned Morningstar’s top rating for 14 years in a row.
In their annual industry report, Morningstar evaluated 59 plans for their underlying investment quality and selection process, asset allocation methodology, investment team and state oversight. For Gold-rated plans like my529, distinguishing factors included investment option design, state stewardship and low costs.
Morningstar Research Services LLC, a leading provider of independent investment research, is a subsidiary of Morningstar Inc.
The Morningstar analysts praised the construction of my529’s investment offerings and the plan’s low-priced options, including the Customized Age-Based option, which gives account owners the flexibility to tailor a portfolio in line with their individual goals, risk appetite and time horizon.
The report highlighted my529’s knowledgeable investment team, effective state oversight and the expertise of the plan’s board members, advisors and consultants as integral to plan success.
A state-specific breakdown also noted my529’s history of fee reductions – and that the plan’s low costs overall made it an attractive investment vehicle to investors across the country. The state report underscored the stability of my529’s investment team, which enables the plan to provide continuity.
my529’s record of 14 top industry ratings is unmatched by any other 529 plan.
Here are some of my529’s key accomplishments over the same period:
- More than 168,900 my529 beneficiaries have used their funds for qualified education expenses, including K-12 tuition expenses since 2011, totaling over $7.3 billion.
- In 2024, 45% of higher education/K-12 withdrawals were from earnings, totaling $445 million ($998 million in total higher education/K-12 withdrawals) – which is why investing in a 529 plan is advantageous. In a my529 account, earnings grow tax-deferred from federal and Utah state income taxes, and withdrawals are tax-free if used for qualified education expenses like tuition, fees, books, supplies and room and board.
- my529 is the third-largest direct-sold 529 plan by assets in the country, with more than 560,000 accounts and $25.1 billion in assets under management. Direct-sold means people can open an account directly with my529 and do not require an advisor or broker to do so.
- Finally, friends and family can also contribute to a my529 beneficiary’s savings journey through my529’s Gift Program. More than $543 million in total gift contributions have been given through my529’s Gift Program since the program’s launch in 2013. Learn more at gift.my529.org.
Data as of October 29, 2024
“my529 delivers a high-quality, low-cost 529 plan so that families at every income level can invest for their educational goals, whether that’s college, university, technical college, trade school, a registered apprenticeship or K-12 tuition expenses,” said Richard Ellis, my529 executive director. “We appreciate Morningstar’s acknowledgement of our team’s efforts this year.”
“We are proud to be a 529 plan that helps so many families across the country in their pursuit of education,” Ellis said.
Read Morningstar’s 529 industry report.
A Morningstar Analyst RatingTM for a 529 college savings plan is not a credit or risk rating.
Analyst ratings are subjective in nature and should not be used as the sole basis for investment decisions. Analyst ratings are based on Morningstar analysts’ current expectations about future events and therefore involve unknown risks and uncertainties that may cause Morningstar’s expectations not to occur or to differ significantly from what was expected. Morningstar does not represent its analyst ratings to be guarantees.
Please visit Morningstar.com for more information about the analyst ratings, as well as other Morningstar ratings and fund rankings.
