Utah 529 Plan: What College Savers Should Know
Credit: Image Credit: strickke / iStock / Getty Images PlusAccording to the Federal Reserve, Utah held about $20.7 billion in 529 plans in September 2023.[1] That’s the fifth-largest 529 balance in the country.
Anyone can enroll in a 529 plan to save money for college or other educational expenses. In Utah, state residents can contribute up to $540,000 to these special savings accounts. And, that comes with state tax benefits.
Keep reading to learn more about Utah’s 529 and tax deduction rules.
Utah 529 Plan
Utah offers one 529 plan.
My529
- Requires State Residency? No
- K-12 Expenses Eligible? Yes
- Fees: 0.1-0.455%
- Performance Notes:[3]
- The My529 Global Equity Fund has averaged 8.35% in annual returns since its inception in 2015.
- The My529 Stable Value portfolio, a more conservative option, has averaged 2.13% in annual returns since its inception in 2018.
- In 2021, Utah’s My529 introduced target enrollment date portfolios, so you can select an investment option positioned to grow until your beneficiary reaches college age.
Behind the Numbers
Keep in mind, 529 portfolio performance changes over time with the stock market. We updated our performance notes in November 2023.
Also, Utah’s 529 plan listed above includes many portfolios to choose from. Explore different options to see which is right for you.
Utah 529 Rules and Tax Deduction
According to the College Savings Plan Network:[2]
- Single state residents can take a tax credit on contributions they make to the Utah 529 plan — 4.65% on up to $2,290 spent per beneficiary. That’s about $107 maximum per beneficiary.
- Married residents who file jointly can take a tax credit of 4.65% on up to $4,580 per beneficiary for married couples. That’s $213 maximum.
- In Utah, residents can contribute up to $540,000 in total to college savings plans.
- All eligible withdrawals from 529 plans are tax-free. In Utah, that includes money you withdraw to pay for college or for K-12 expenses.