Meet the deadline to maximize your tax benefit
The final few weeks of 2022 are here. Now is a good time to organize your finances and prepare for the upcoming tax season.
my529, Utah’s educational savings plan, wants you to be aware of the upcoming year-end deadlines and the Utah state income tax benefit that you are entitled to if you own a my529 account. To increase your state tax credit, consider making a contribution before the end of the year.
529 plans are specially designated to use when saving for a child’s future higher education goals. Federal and, in some cases, state tax benefits for account owners are some of the important advantages of using a 529 plan.
Benefits of a 529 plan
- Earnings in a 529 account grow tax-deferred. That means that earnings are not depleted by taxes.
- Withdrawals from a 529 account are tax-free when used for qualified education expenses, which can be found here.
Utah state tax benefits
- Any contributions made to my529 accounts in 2022 may enable you to claim a 4.85% Utah state income tax credit per qualified beneficiary, with certain limitations. See table at my529.org/utah-state-tax-benefits-information.
- You can qualify for the tax benefits up to the maximum amount, but you can contribute even more if you desire. Even if someone else contributes to your my529 account, you receive the tax credit as the account owner.
To claim tax benefits for 2022 contributions to your my529 account, you must meet the following deadlines:
- Mailed or faxed contributions must be received in the my529 office before Friday, December 30, 2022, at 5 p.m.
- Online contributions at my529.org must be received before Saturday, December 31, 2022, at 11:59 p.m.
See my529.org for more information about year-end deadlines.
Whether you’re looking to open a 529 account or you already own at least one, my529 can help you save for future education costs while also taking advantage of available tax benefits. Visit my529.org for more information.
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.
Investments in my529 are not insured or guaranteed by my529, the Utah Board of Higher Education, the Utah Higher Education Assistance Authority Board of Directors, 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 includes FDIC-insured accounts as an underlying investment.
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.
my529 does not provide legal, financial, investment or tax advice. You should consult your own tax or legal advisor to determine the effect of federal and state tax laws on your particular situation.
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