This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
The federal tax exemption for college savings plans has been made permanent, Utah higher education officials announced Friday. The U.S. Congress approved the Pension Protection Act (H.R.4), which allows 529 plans, such as the Utah Educational Savings Plan (UESP), to retain their tax exempt status. The provision had been set to expire on Dec. 31, 2010. Once President Bush signs this act, families who are saving, or thinking about saving, for college with UESP will know their account will not be subject to federal taxes when the money is used to pay for college education, said UESP Director Lynne Ward. Currently, UESP has more than 77,000 accounts with $1.5 billion invested. The state-sponsored college savings plan is under the management of Utah System of Higher Education and the state Board of Regents. UESP offers favorable tax benefits and reduced fees to Utah taxpayers who put aside money for a child's college education. To learn more about UESP, call 1-800-418-2551 or visit www.uesp.org. -Shinika A. Sykes
