Utah’s customizable 529 college savings plan in March surpassed $12 billion, an average of $33,400 per account. My529 is a direct-sold savings plan formerly known as the Utah Education Savings Plan (UESP).
“We run a strong plan and people are drawn to our program,” said Lynne Ward, the executive director of My529.
Besides receiving a gold-star rating from Morningstar in 2017 and being one of the least costly 529 college savings plans, My529 has another appealing quality for advisors: it allows them to customize investment portfolios.
Two customizable options allow financial advisors and sophisticated account owners to create their own allocations, Ward said. Advisors can give these allocations names and reuse the template with other clients, she added. My529 also has four age-based options and eight static options, Ward says.
The plan changed its name February 5 to My529 to clarify that account owners and beneficiaries don't need to be Utah residents to participate in the plan, and money saved in the plan can be used at any eligible educational institution.
Utah’s college savings plan has been around since 1996 and has amassed more than 360,000 accounts. It adds an average of 37,000 accounts every year, says Ward. The plan's assets are up about 20 percent from 2017's first quarter, when assets topped $10 billion and accounts were 7 percent lower than they are now.
The in-state tax benefits include a single filing tax deduction of up to $1,920 and a joint filing tax deduction up to $3,840.