Utah 529 Plan
Utahs 529 plan is called my529. It has consistently been considered to be one of the top 529 plans in the country because of the performance of the investments, flexibility and low cost fees associated with the funds. It is a direct sold plan which means you can set the plan up directly with my529, a quasi governmental agency who also administers the plan. This plan is available to out of state residents. Utah also offers Able Utah, a program that offers Utah residents with disabilities tax free investments. The investment mix for the my529 portfolios consists of the following:
- Vanguard mutual funds
- PIMCO Interest Income Fund
- FDIC-insured accounts
- Dimensional Fund Advisors mutual funds
Target Enrollment Date
Utah offers 12 target enrollment portfolios. Investors typically choose a portfolio that is close to the anticipated college enrollment period for the beneficiary. These portfolios shift towards more conservative investments in 2 year intervals.
Static Options
Static option portfolios remain the same with their allocation mix. You can select from a mix of aggressive, moderate, and conservative portfolios. Investors can make changes to these portfolios twice a year.
Customized Aged Based
Customized age based portfolios allows you to create your own investment mix of equity funds, bond funds, and principal preservation funds. There are 10 age brackets. 0-3, 4-6, 7-9, 10-12, 13-14, 15, 16, 17, 18, and 19+. The account automatically rebalances annually on the beneficiaries birthday to the target allocation percentages you selected.
Customized Static
Customized Static portfolios also allows you to create your own investment mix of equity funds, bond funds, and principal funds. The option that you select will remain the same unless you select a different one. However, the account will be rebalanced annually on the beneficiaries birthday in order to keep in line with the target allocation that was selected.
Conclusion
529 plans can be a great way to save for college. Utah’s 529 plan is considered to be one of the best in the country because of the plan’s flexibility, low cost fees, and performance of the funds. The plans offers 4 types of portfolios that includes, target enrollment date, static options, customized aged based, as well as customized static.