The Utah Educational Savings Plan, commonly referred to as UESP, is a tax-advantaged 529 college savings plan established by the State of Utah and designed to encourage saving for future higher education costs. UESP is Utah’s official and only 529 college savings plan.
As parents we want to give our kids the best possible head start financially. For many of us that means turning to investment vehicles designed specifically with minors in mind; two of the most popular are the 529 Education Savings plan, most commonly referred to simply as the 529 plan, and the saving account provided by the Uniform Gifts to Minors Act (UGMA)/Uniform Transfers to Minors Act (UTMA). Both of these options offer ways for parents to begin saving for their children and for the accounts to eventually transfer ownership to the designee. In today’s post we explore the pros, cons, and specific functions of these two popular accounts to help you choose the right one for your child.
For grandparents (or other extended family members) who want to support a child’s education, there are a number of methods available for use—each with their own advantages and uses. All provide financial support for the student, of course, but each has its own challenges and tax considerations to be taken into account.
To help your children get a better financial start, it’s important to have an education savings plan. The sooner you start saving, the better off you will be in the long run, and even modest savings can grow into significant investments by the time your child is ready to head off to school.
From birth to adolescence and from college graduation to having children of their own, children will always be linked to money and finances. Besides providing financially for their children, parents must make sure that their children learn about the proper management of money.
The importance of higher education has only risen in the past decades, with more and more jobs requiring a college degree to even be considered. According to the U.S. Census Bureau, those with a bachelor’s degree will earn nearly twice as much over the course of their lifetimes as those who have only a high school diploma. This means that rather than facing the choice of whether children should attend college, more and more parents are instead faced with the decision of how they will pay for it. [Infographic]
A 529 plan (also known as a qualified tuition plan) is a tax-advantaged way to contribute to your child’s college savings. While each state offers its own 529 plan, not all plans are created equal. The investment options and flexibility available within each plan will differ somewhat, so it’s important to do some research before choosing what plan to contribute to. Remember, you aren’t restricted to your state of residence’s plan, so shopping around can be beneficial. Learn about your options before investing in a 529 plan so that you can choose the plan that best fits your college savings needs.