Utah 529 Plan Rules And College Savings Options
Utah has a 529 plan called my529 that can help you save for college. Utah does not offer its own Able plan.
If you live in Utah, these might be good options for you to save for college.
These programs are designed to help make college more affordable - so that you can get the education you need. By saving for college early on, you can make paying for college easier down the road.
If you're not quite sure how 529 plans work, check out this starter guide to What Is a 529 Plan?
There is also a specific order of operations to save for college that we recommend families follow. These programs are specific to the State of Utah. Each state has different rules when it comes to 529 plan savings. Here are the Utah 529 plan rules.
Average Cost Of College In Utah
When saving for college in Utah, it's important to take into consideration the cost of attendance in the state. If you choose to go to an out-of-state school, you need to look at the average cost of attendance in that state.
There are 62 colleges and universities in the State of Utah.
The total average cost of college (Cost of Attendance) in Utah for in-state residents is $14,394 for 2023. This includes tuition, room and board, books and supplies, and other expenses.
For just tuition alone, the average undergraduate tuition for in-state residents is $4,807 for 2023. The cost of tuition in Utah has been rising at about 1% per year.
See how this compares to the average cost of college here. Keep in mind the average student loan debt by graduating class here.
Utah 529 Plan Rules And Tax Information
Tax savings is one of the big benefits of using a 529 plan to save for college. On a federal-level, there is no tax savings for contributions, but qualified distributions are tax-free.
Here are the special tax benefits and considerations for using a 529 plan in Utah.
Contributions
Utah offers a state tax credit of up to 4.85% of contributions, with a limit of contributions eligible of $2,410 for single filers and $4,820 for married filers in 2024. Eligible beneficiaries must be under 19 for the contribution to qualify for the tax credit. Maximum tax credit is $112.06 for singles and $224.13 for married couples.
Minimum: There is no minimum contribution.
Maximum: Accepts contributions until all account balances for the same beneficiary reach $560,000.
Rollovers
Rollovers into the state plan are considered for the tax credit up to the limits specified above.
Outbound rollovers are subject to recapture of previous tax credits.
Qualified Distributions
Qualified distributions from a Utah and non-Utah 529 plan are tax-free.
K-12 Education
Utah does conform with Federal law in regard to using a 529 plan for K-12 tuition. See this guide: Using a 529 Plan For Elementary and High School Private Education.
Student Loans
Utah does conform with Federal law for using a 529 plan for student loans.
Rollover To Roth IRA
Utah does not allow the rollover to a Roth IRA up to $35,000. Learn more about the 529 plan to Roth IRA rollover here.
Non-Qualified Distributions Taxes, Penalties, Recapture
A non-qualified withdrawal from a Utah 529 plan is subject to taxes on the full amount to recapture previous tax credits.
Utah 529 College Savings Plan Options
Utah has one 529 plan option - one consumer plan.
Utah 529 Plan Facts
Utah has the following currently invested in 529 plans in the state as of December 31, 2023:
529 Plan | Number Of Accounts | Total Assets | Average Account Balance |
|---|---|---|---|
Utah my529 | 498,672 | $21,945,372,239 | $44,008 |
my529
The my529 Plan is the name of Utah's 529 Plan. This plan offers a variety of investment options, including age-based portfolios that become more conservative as the child approaches college, and static investment fund options.
The funds offered include Vanguard, Dimension, and PIMCO.
Fees:
There is a program management fee of 0.10% to 0.14%.
The underlying funds all charge expense ratios from 0.00% to 0.49% depending on the investment option.
Who Should Use It:
We recommend that Utah residents use the my529 plan due to the tax benefits, low fees, and plan investment options.
We recommend that out-of-state residents utilize this plan as well.
Utah 529 Able Plan Options
529A Able accounts are accounts designed to help those with disabilities escape poverty and save for themselves. Learn more about 529A Able Plans here.
Utah is one of the few states that doesn't offer its own Able plan.
Other Programs To Save For College
A 529 plan is one way to save for college. Remember, we have a full guide on our approach to college savings here - and it helps you find other options.
If you're looking for ways to boost your college savings, check this out:
Backer
Backer is one of our favorite ways to save for college because they make gifting for college so easy. You can setup an account, link your 529 plan (in most states), and get a unique URL that you can share with friends and family to save for your children's college.
Plus, they have Backer Bucks, which allow you to earn rewards and rebates for the shopping you already do - directly deposited into your children's 529 plan.
Upromise
Upromise is another awesome tool to help you save for college because they have a lot of ways that you can earn money for your 529 plan. You can get rebates and rewards, and you can get cash back into your child's 529 plan by using the Upromise credit card.
Utah Financial Aid
Using a 529 plan isn't the only way to save money for college. Each state typically offers a variety of financial aid programs for their residents. These include scholarships and grants, and sometimes unique forgivable student loan opportunities.
Check out the list of Utah Student Loan and Financial Aid Programs.
Return to the full list of 529 Plans By State.
Editor: Colin Graves Reviewed by: Mark Kantrowitz
