Utah Educational Savings Plan Lowers Administrative Mail Delivery Fee

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Provides Option to Have it Waived Entirely

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Starting today, the Utah Educational Savings Plan (UESP) lowers the Administrative Mail Delivery Fee (formerly called the Administrative Maintenance Fee) by 20 percent to a maximum of $12 per year on account balances up to $6,000.

UESP account owners may have this fee waived entirely if they choose to receive their quarterly account statements, Program Description, Program Description Supplements, newsletters, and other UESP communications online instead of in the mail. As always, this fee is waived for Utah resident account owners.

In addition to saving more money for future qualified college expenses by having the fee waived, benefits of receiving UESP account information online include:

  •     Simplified account management. Account owners receive an e-mail that reminds them when statements and other UESP communications are available and can access account information 24/7.
  •     More security. Account owners can eliminate worry about lost or stolen mail with secure online access

to statements.

  •     Less clutter. Account owners no longer need to open and file mail.

“UESP has a history of lowering fees when possible,” says Lynne Ward, UESP executive director. “The fact that account owners also may opt to have the lower fee waived by receiving quarterly statements and other UESP communications online enables them to save more, and even small amounts can add up over the years when saving for a child’s future qualified higher education expenses.”

The Administrative Mail Delivery Fee is $2 per $1,000 on an account’s balance, up to $12 annually, and is charged to UESP accounts on the final business day of each month. Previously, this fee was $3 per $1,000 on an account’s balance, up to $15 per year.

For more information about the Utah Educational Savings Plan, visit uesp.org, call UESP toll-free at 800.418.2551, or e-mail info(AT)uesp.org.

About the Utah Educational Savings Plan UESP, Utah’s official nonprofit 529 college savings plan, manages more than $7.5 billion in assets. UESP is consistently ranked among the nation’s top 529 plans and is highly recommended by Morningstar Inc., Money magazine, CBS MoneyWatch.com, Kiplinger’s Personal Finance magazine, and consumer expert Clark Howard. These high rankings can be attributed to UESP’s efforts to be the industry’s low-cost leader and industry innovations such as FDIC-insured accounts and customized allocation investment options.

UESP requires no minimum deposit or balance to open an account, so families can save a little or a lot, according to their own schedules. With a user-friendly website, uesp.org, UESP makes it easy to open, manage, and contribute to an account online. Earnings on UESP accounts grow tax deferred and are federal and Utah state income tax free when used for qualified higher education expenses such as tuition and fees; required books, supplies and equipment; and certain room and board costs at any eligible educational institution that participates in federal financial aid programs for students, not just at institutions in Utah.

Utah taxpayers/residents also may receive a Utah state income tax credit for contributions to their accounts each year. For 2014, Utah taxpayers can claim a 5 percent tax credit on UESP contributions up to $1,860 per qualified beneficiary for single filers and trusts ($3,720 per qualified beneficiary for joint filers). Utah-based corporations that own UESP accounts can benefit from a $1,860 tax deduction per qualified beneficiary. To receive the credit or deduction, the beneficiary on the account must be designated as such before age 19.

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Read the Program Description for more information and consider all investment objectives, risks, charges, and expenses before investing. Call 800.418.2551 for a copy of the Program Description or visit uesp.org.

Investments in UESP are not guaranteed by UESP, the Utah State Board of Regents, the Utah Higher Education Assistance Authority (UHEAA) or any other state or federal agency. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-insured accounts. Please read the Program Description to learn about the FDIC-insured accounts. Your investment could lose value.

Non-Utah taxpayers and residents: You should determine whether the state in which you or your beneficiary pays taxes or lives offers a 529 plan that provides state tax or other benefits not otherwise available to you by investing in UESP. You should consider such state tax treatment and benefits, if any, before investing in UESP.

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Diane Johnson
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