Invest in education with my529
my529, Utah’s 529, is a tax-advantaged 529 educational savings plan designed to make it easier for families to invest in and pay for the qualified higher education expenses of a beneficiary.
my529 is direct-sold
You can open a my529 account directly. A financial advisor isn’t necessary.
We have a lot of fans
my529 has earned Morningstar’s highest rating for the last 10 years, a run unmatched by any other plan in the industry.*
Consumer expert and syndicated columnist Clark Howard puts my529 on his Dean’s List, “Here are the best places to invest your education savings”
Anyone age 18 or older can open an account
- You don’t need to be related to the beneficiary
- You can open an account for yourself
- You don’t need to be a Utah resident
No cost to open an account
- No enrollment fee
- No initial contribution or minimum balance required
Account earnings accumulate tax-deferred. Your balance can grow faster because you don’t pay taxes annually on account earnings.
Earnings on withdrawals are exempt from federal and Utah state income tax if the funds are used to pay for qualified higher education expenses, including K-12 tuition expenses. (See below for more information on qualified higher education expenses.)
my529 fees are among the lowest in the 529 industry.
- Administrative fees are kept at a minimum
- my529 does not charge fees to open an account, change investment options, roll over or transfer funds, or make withdrawals
- More about my529’s fees and fee structure
my529 offers 13 investment options. (Note: Your investment could lose value.)
- Four age-based options. These automatically reallocate your funds to be weighted less in equity funds and more in fixed-income funds, a PIMCO stable value fund, or FDIC-insured accounts as your beneficiary ages.
- Seven static options. The asset allocation you choose when you open an account stays the same unless you request a change.
- Two customized options. You can design a Customized Age-Based or a Customized Static option that works best for you.
- You can change investment options twice a year.
- More information on my529’s investment options: age-based, static, customized.
How account funds can be used
Withdrawals can be used for the qualified higher education expenses of your beneficiary at any eligible educational institution in the United States or abroad.
An eligible educational institution generally includes any accredited public or private college, university, or technical school that is qualified to participate in federal student aid programs. 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 also may withdraw up to $10,000 tax-free annually per beneficiary per calendar year for K-12 tuition expenses at public, private, and religious schools.
What are qualified higher educational expenses?
- Tuition and mandatory fees
- Books, supplies, and equipment required for enrollment
- Computers, related software and equipment, and internet service
- Room and board for students enrolled at least half time
- Services required for a student with special needs to attend a post-secondary school
- K-12 tuition expenses of up to $10,000 per year per beneficiary (from all 529 accounts) at public, private, or religious schools
- Payments on qualified education loans. This includes amounts paid—as principal or interest—on any qualified education loan of the beneficiary, or a sibling of the designated beneficiary. Withdrawals for loan repayments are limited to a total of $10,000 from all 529 accounts. Distributions to a sibling also have a $10,000 limit. However, the account owner cannot use 529 funds to repay a qualified loan and then use those same 529 funds to claim a tax deduction for student loan interest.
- Costs for registered apprenticeships, including fees, books, supplies and equipment required for participation. To qualify, apprenticeship programs must be registered and certified with the Secretary of Labor under Section 1 of the National Apprenticeship Act.
Important notice: Federal and state tax consequences will apply if account earnings are used for nonqualified expenses.
Utah account owners may qualify for a Utah state income tax credit or deduction
- A 5 percent state income tax credit is available to individuals, couples, and trusts for annual contributions up to a certain limit.
- A 5 percent state income tax deduction is available to corporations for annual contributions up to a certain limit.
Please read the my529 Program Description for more information.
*my529 was rated “Gold” or its equivalent by Morningstar 2004-2007, 2009, and 2011-2020; rated “Silver” or its equivalent in 2008 and 2010. The Morningstar Analyst Rating™ for 529 college savings plans is not a credit or risk rating. To determine an analyst rating, Morningstar’s analysts consider five factors: the plan’s strategy and investment process; the plan’s risk-adjusted performance; an assessment of the individuals managing the plan’s investment options (people); the stewardship practices of the plan’s administration and parent firm (together, parent); and whether the plan’s investment options are a good value proposition compared to its peers (price). Plans are then assigned forward-looking ratings of “Gold,” “Silver,” “Bronze,” “Neutral,” and “Negative.” The top three ratings (Gold, Silver, and Bronze) indicate that Morningstar’s analysts think highly of a 529 plan; the differences correspond to the level of analyst conviction in the ability of a plan’s investment options to collectively outperform their respective benchmarks and peers through time, within the context of the level of risk taken. Morningstar does not rate all 529s every year; it rated just 62 of 92 plans in 2019.
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.