Utah 529 plan

Utah 529 Plan:

Program match on contributions: Pilot program matches contributions of low-income Utah participants.

State tax deduction or credit for contributions: In 2008, contributions to the Utah 529 plan of up to $1,650 per beneficiary for single taxpayers, and $3,300 per beneficiary for married taxpayers filing jointly, are deductible in computing Utah taxable income for those selecting the "traditional" tax method. For those selecting the "single-rate" method, a 5.00% tax credit may be claimed on those contributions. The deduction/credit limits are increased each year for inflation. Contributions to an account established after a beneficiary reaches age 19 are not eligible. Contributions from a non-owner are deductible or creditable by the account owner and not by the non-owner/contributor. Contribution deadline is receipt by the last business day of the year.

State tax recapture provisions: The principal portion of rollovers and nonqualified withdrawals from this plan are included in Utah taxable income to the extent of prior Utah tax deductions or Utah tax credits.

Age-based investment options: Five age-based options, with different underlying investments and risk levels, are offered. Contributions are allocated among the underlying investments according to the option selected and the age of the beneficiary, and are reallocated to become more conservative as the beneficiary approaches college age.

Static investment options: Select among the State Treasurer’s Investment Fund, two individual-fund index portfolios, and two equity-index, multi-fund portfolios. Refer to Static Investment Options.

Single Funds
 * Option 6 Diversified Equity
 * Vanguard Institutional S&P 500 Index Fund (50%)
 * Vanguard Institutional Mid Cap Index Fund (20%)
 * Vanguard Institutional Small Cap Index Fund (20%)
 * Vanguard Admiral International Growth Fund (5%)
 * Vanguard International Value Fund (5%)


 * Option 4 S&P 500
 * Vanguard Institutional S&P 500 Index Fund (100%)


 * Option 5 Total Bond
 * Vanguard Institutional Total Bond Market Index (100%)


 * Option 10 Equities 30% International
 * Vanguard Institutional Total Market Index Fund (70%)
 * Vanguard Institutional Developed Market Index Fund (30%)


 * Option 1 Public Treasurers Investment Fund (PTIF)

Expenses: 0.22% - 0.34%; maintenance fee: $3.75 per $1,000 of account balance up to a maximum of $15 annually (waived for Utah residents); charged quarterly. Accounts with less than $5,000 are charged only 0.075% of the balance each quarter.


 * Direct link to 529 Plan site
 * Plan document

Links

 * Morningstar Overview
 * State Creditor Protections for 529 Plans