Utah Educational Savings Plan Tops $11 Billion in Assets under Management

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July 27, 2017

 

Utah Educational Savings Plan Tops $11 Billion in Assets under Management

Nationwide recognition of Utah’s 529 college savings plan bolsters rapid growth

(Salt Lake City) The Utah Educational Savings Plan (UESP) announced today that assets under its management passed $11 billion, just seven months after crossing the $10 billion threshold. The 10 percent increase in assets since January confirms that UESP is one of the fastest-expanding plans in the 529 college savings marketplace.

“More and more, consumers in the United States see the value of saving for their child’s higher education through Utah’s low-cost, tax-advantaged 529 plan. Today, UESP administers accounts for account owners living in every state of the country,” said Lynne Ward, UESP executive director.

Accounts and assets managed by UESP have grown rapidly, reflecting persistent growth in demand. Since 2015, account numbers have surged from 277,000 to 341,000, a 23 percent gain. Assets increased by $3 billion, or 37 percent, during the same time period. By contrast, assets in all 529 plans grew 15 percent between the start of 2015 and the first quarter of this year, according to Strategic Insight, an asset management research firm.

UESP is the fourth-largest direct-sold 529 plan in the nation. Investment research firm Morningstar Inc. has awarded Utah’s official and only 529 plan its coveted Analyst RatingTM of Gold for six uninterrupted years, including last year for 2016. UESP was one of only three plans to earn a Gold rating last year for its flexible investment options, low fees, and plan management.

A UESP account provides valuable tax benefits that make saving for college easier.

    • Earnings accumulate inside the account tax-free.
    • Earnings used to pay for qualified higher education expenses are exempt from federal and Utah state income tax.
    • Utah taxpayers may qualify for a Utah state income tax credit or deduction for contributions to their accounts up to a certain amount per beneficiary.

About UESP

UESP, Utah’s official nonprofit 529 college savings plan, is highly ranked by Morningstar Inc., Kiplinger’s Personal Finance magazine, Money magazine, CBS MoneyWatch.com, and consumer expert Clark Howard for its low fees and industry innovations such as its customized allocation investment options.
Accounts are free to open, and UESP requires no minimum deposit or account balance. UESP’s user-friendly website, my529.org, makes it easy to open, manage, and contribute to an account online.

To learn more about the Utah Educational Savings Plan, visit my529.org, call UESP toll-free at 800.418.2551, or send an email to info@my529.org.

Important Legal Notice

Read the Program Description for more information and consider all investment objectives, risks, charges, and expenses before investing. Call 800.418.2551 for a copy of the Program Description or visit my529.org.

Investments in UESP are not guaranteed by UESP, the Utah State Board of Regents, the Utah Higher Education Assistance Authority or any other state or federal agency. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-insured accounts. Please read the Program Description to learn about the FDIC-insured accounts. Your investment could lose value.

Non-Utah taxpayers and residents: You should determine whether the state in which you or your beneficiary pays taxes or lives offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in UESP. You should consider such state tax treatment and benefits, if any, before investing in UESP.

UESP does not provide legal, financial, investment, or tax advice, and the information provided in this document does not contain legal, financial, investment, or tax 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.

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.