Benefits of my529
What is a 529 plan?
529 plans are sponsored by states, state agencies, and educational institutions, and are authorized by Section 529 of the Internal Revenue Code.
The plans are designed to encourage saving for future education costs. Earnings in a 529 account grow deferred from federal and state taxes. Withdrawals are tax-free when used on qualified educational expenses.
Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty, as well as state and local income taxes.
my529 is a 529 plan established and sponsored by the State of Utah.
Choosing my529
You’re in control
my529 is direct-sold, which means you can open a my529 account on your own. A financial advisor isn’t necessary. Account owners control their accounts — not the beneficiary.
Open an account for free
No enrollment fee and no minimum contribution or balance is required. Enrollment is open year-round. If you’re ready, you can start now!
Anyone age 18 or older can open an account
You can open an account for anyone. You don’t need to be related to the beneficiary and Utah residency is not required. You can even open an account for yourself. There are no age, income, or residency restrictions for beneficiaries. Who Can Participate >
Tax advantages
529 plans feature federal tax benefits on earnings in an account, and withdrawals are tax free if used on qualified expenses. my529 also offers a credit for Utah taxpayer residents.
Tax Advantages >
Low fees
my529 has some of the lowest fees in the 529 industry.
my529’s fee structure >
Use of funds
You don’t have to live in Utah to own or be the beneficiary of a my529 account. Funds can be used at any eligible educational institution in the U.S. or abroad that participates in a federal student financial aid program; see complete list at fafsa.ed.gov.
“A low- and moderate-income child who has school savings of $1 to $499 … is about four times more likely to graduate from college.”
— Assets and Education Initiative. (2013). Building Expectations, Delivering Results: Asset-Based Financial Aid and the Future of Higher Education. In W. Elliott (Ed.), Biannual report on the assets and education field. Lawrence, KS: Assets and Education Initiative (AEDI).
$25
BILLION
$25 billion in assets under our management.
560,000
ACCOUNTS
There are more than 560,000 accounts with my529
14
YEARS
my529 has earned Morningstar’s highest rating for the past 14 years.
We offer a range of investment options
my529 offers a variety of investment options. Each option utilizes a different investment strategy. You can also design your own investment option.
- my529 offers predetermined Target Enrollment Date and Static investment options, featuring Vanguard funds, a PIMCO-managed stable value fund and FDIC-insured accounts.
- Target Enrollment Date options take into consideration the target year the account beneficiary will begin taking withdrawals to pay for qualified education expenses.
- Over time, the options gradually shift to a more conservative investment allocation as the target enrollment year draws closer. There are 12 Target Enrollment Date portfolios.
- Ten Static options do not change asset allocations as your beneficiary ages. The allocation you choose stays the same, unless you request a change.
- Two Customized options that you design to fit your needs—age-based or static.
- You can change your investment option twice a year.
Your investment, your way.
When you craft your own investment option, you can choose from among 20 Vanguard or 10 Dimensional funds to mix and match your personalized profile.
Customized Investment:
How account funds can be used
Withdrawals can be used only for the qualified higher education expenses of your beneficiary at any eligible educational institution in the United States or abroad that participates in federal student aid programs.
An eligible educational institution generally includes any accredited public or private college, university, or vocational school. Contact your school of interest to determine their eligibility. You can also find a complete list of institutions, updated quarterly, at the U.S. Department of Education federal student aid site.
my529 account owners may take tax-free withdrawals up to $10,000 annually from their account for K-12 tuition expenses at public, private, or religious schools.
