What is a 529 plan?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for a beneficiary’s future qualified higher education expenses, including K-12 tuition expenses. Learn more.
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. Learn more.
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.
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 higher education expenses, including K-12 tuition expenses, of your beneficiary.
- 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.
- 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. Learn more.
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.
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 age-based, 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 $500,000. Learn more.
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.
Is my investment in a my529 account insured or guaranteed?
my529 offers 13 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.
What are qualified higher education expenses?
- Tuition, fees, books, supplies, and equipment required to enroll or attend an eligible educational institution
- Computers, peripheral equipment, educational software, and internet access and related services
- Room-and-board expenses up to certain limits
- Expenses for services for a special needs beneficiary to enroll and attend an eligible educational institution Learn more.
- K-12 tuition expenses at public, private, or religious schools (Payments for K-12 tuition expenses cannot exceed a combined total of $10,000 per calendar year per beneficiary from all qualified tuition programs, including my529)
- 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.
my529 also can help you save for graduate school and vocational school. Learn more.
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. Learn more.
How do I open an account?
- Read the Program Description.
- Open your individual account online or by submitting an Individual Account Agreement (Form 100).
- Open an individual, institutional, or UGMA/UTMA account by submitting the appropriate Account Agreement form (Form 100, 102, or 104). Forms are available at my529.org or by requesting a form at 800.418-2551. Learn more.
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.
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. Learn more.