Utah 529 Plan: What College Savers Should Know

According to the Federal Reserve, Utah held about $18.3 billion in 529 plans in June 2022.^[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 $525,000 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: 0.11-0.458%
• Performance Notes:^[3]
  • The My529 Global Equity Fund has averaged 8.6% in annual returns since its inception in 2015.
  • The My529 Stable Value portfolio, a more conservative option, has averaged 2.14% 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.

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 — 5% on up to $2,130 spent per beneficiary. That's $106.50 maximum.
• Married residents who file jointly can take a tax credit of 5% on up to $4,260 per beneficiary for married couples. That's $213 maximum.
• In Utah, residents can contribute up to $525,000 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.