FAQ

Learn more about 529 plans, my529, investments and eligible expenses

What is a 529 plan?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for a beneficiary’s future qualified education expenses, including K-12 tuition expenses. Find the benefits of my529 >

Is my529 a 529 plan?

Yes. my529 is a nonprofit 529 plan established by the State of Utah in 1996. my529 is Utah’s official and only 529 plan. Find the benefits of my529 >

Who can open a my529 account?

Anyone at least 18 who has a valid U.S. Social Security or Taxpayer Identification Number and a physical address that is not a PO Box can open a my529 account. Trusts, partnerships, and corporations also can be account owners. Learn more about participation >

What are the tax advantages of a my529 account?

  • Earnings accumulate deferred from federal and Utah state income taxes. Withdrawals are tax-free when used to pay for qualified education expenses of your beneficiary. Qualified expenses include K-12 tuition expenses, costs for registered apprenticeships and payments on qualified education loans.
  • A Utah taxpayer who is an account owner, including a Utah trust, may take a Utah state income tax credit on contributions up to certain limits if the beneficiary was younger than age 19 when established as the beneficiary on the account.
  • Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty, as well as state and local income taxes.
  • Utah corporations can claim a state income tax deduction for contributions up to certain limits.
  • If the age 19 requirement is met, the account owner is eligible for the Utah state income tax credit or deduction for the life of the account each year a contribution is made. More on tax advantages >

Do I have to be a Utah resident to open an account?

No. You do not have to be a Utah resident to open an account. Learn more about participation >

How do I open an account?

How many accounts can I open?

You may open as many accounts for a beneficiary as you wish. Each account can be invested in only one enrollment date, static, or customized investment option. If you open more than one account for the same beneficiary, each account must be invested in a different investment option. All account balances for the same beneficiary, regardless of the owner, will be aggregated for purposes of determining the maximum account balance limit, which currently is $574,000. What you’ll need to get started >

Can friends and relatives contribute to an account?

Anyone can contribute to a my529 account. Account owners can invite friends and relatives to write a check or make contributions via the my529 Gift Program, which uses a unique code so you don’t have to disclose your account information. Learn more about contributions and the Gift Program.

A Utah taxpayer may not claim Utah state tax benefits for a contribution made to an account for which he or she is not the account owner.

Who can be a beneficiary?

Anyone with a valid U.S. Social Security or Taxpayer Identification Number can be a beneficiary. The beneficiary does not have to be a Utah resident. The account owner and beneficiary do not need to be related. The account owner and beneficiary can be the same person. Learn more about participation >

Is my investment in a my529 account insured or guaranteed?

my529 offers a variety of investment options with numerous underlying investments. Money in the FDIC-insured accounts is eligible for Federal Deposit Insurance Corporation (FDIC) insurance. All other investments are not insured or guaranteed by any federal or Utah agency, their employees, or directors. Your investment could lose value.

Do I need to use my savings at a Utah school?

You can use your account funds at any college, university, or vocational school in the U.S. or abroad that participates in federal financial aid programs. You also can use your account funds to pay for K-12 tuition expenses at any public, private, or religious elementary, middle, or high school in the country, or to pay for the costs of a registered apprenticeship. Find the benefits of my529 >

What are qualified education expenses?

See our qualified expenses page.

What happens if my beneficiary decides not to go to college?

Instead of closing your account by making a nonqualified withdrawal of your funds, you can change the beneficiary without harmful tax consequences, as long as the new beneficiary is a member of the family of the previous beneficiary. Learn more about withdrawals >

What kind of web security does my529 offer?

my529 uses Secure Socket Layer (SSL) technology that encrypts information you provide to us via your computer. The information is decrypted once it reaches my529. The SSL technology ensures information is secure in transit and prevents it from being redirected to an unauthorized third party. Read our privacy policy >

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Important Legal Notice

Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing. For a copy of the Program Description, call 800.418.2551 or visit my529.org.

Account Value. Investments in my529 are not insured or guaranteed by my529, the Utah Board of Higher Education, the Utah Education Savings Board of Trustees, any other state or federal agency, or any third party. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-Insured investment option. In addition, my529 offers investment options that are partially insured for the portion of the respective investment option that that includes FDIC-insured accounts as an underlying investments. Units in my529 have not been registered with the United States Securities and Exchange Commission or with any state securities commission.

FDIC insurance is subject to limits set by federal law. Click here for more information about FDIC Insurance.

Non-Utah Taxpayers and Residents. The state in which you or your beneficiary pay taxes or live may offer a 529 plan that provides state tax or other benefits, such as financial aid, scholarship funds, and protection from creditors, not otherwise available to you by investing in my529. You should consider such benefits, if any, before investing in my529.

Consult an advisor. my529 does not provide legal, financial, investment, or tax advice, and the information provided on this website does not contain advice and cannot be construed as such or relied upon for those purposes. You should consult your own tax or legal advisor to determine the effect of federal and state tax laws on your particular situation.

Morningstar rating. A Morningstar Analyst Rating 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. 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.

my529 does not pay commissions, loads or sales charges to financial advisors nor does it endorse financial advisors.

Information on this website is believed to be accurate when posted and is qualified in its entirety by the Program Description.