UESP Releases New Program Description

The Utah Educational Savings Plan published a new version of its Program Description on September 19, 2016.

The Program Description contains important information you need to know about participating in UESP’s program. UESP periodically issues supplements to the Program Description to inform account owners of any updates or changes to the program, and typically publishes a new Program Description every 12 to 18 months to consolidate the supplements and any new information into a single document.

The September 19, 2016, Program Description consolidates four supplements to UESP’s February 2, 2015, version of its Program Description. In addition to consolidating the four supplements, the new Program Description was revised to be more reader-friendly, with less formal, legal language.

Please read the new Program Description. While this is not intended to be a summary of the Program Description, we would like to highlight some changes:

  • Consolidation of the prior version of the Program Description dated February 2, 2015, and its four supplements. This provides one source for all of that information rather than having to refer to multiple documents. Information from the supplements includes:
    • The increase in UESP’s maximum contribution limitation to $418,000.
    • The changes brought about by the PATH Act (passed by Congress in December 2015), which allow computers and related equipment to be classified as qualified higher education expenses (QHEE), and account owners to make recontributions of qualified refunds of QHEE to UESP.
    • The reduction in expense ratios for 13 of 29 underlying funds (11 Vanguard funds and 2 Dimensional funds); the reductions benefited 10 of UESP’s investment options, representing 70 percent of UESP’s accounts and 75 percent of UESP’s account owners. The only increase in operating expense ratio was for the Vanguard International Value Fund (VTRIX), which was increased by Vanguard in 2016 from 44 to 46 basis points; the VTRIX fund, however, was closed to new investments on July 25, 2011.
  • A clarification that UESP account owners own UESP units; they do not own (and have never owned) any of the underlying investments.
  • An update of year-end transaction and tax deadlines for account owners.

The items mentioned above reflect some of the changes made in the September 19, 2016, version of the Program Description. It is important for account owners to read it to fully understand the changes made to UESP.

Please feel free to contact us by phone (800.418.2551) or email (info@my529.org) if you have any additional questions about UESP’s Program Description.

UESP account owners should have received a copy of the new Program Description by mail or email.