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Utah's official 529 college savings plan is announcing new investment choices and lower fees effective June 21.
The Utah Educational Savings Plan (UESP) is dropping its annual administrative asset fees on age-based and five of six static investments by an average of 10 percent to between 0.14 and 0.18 percent. (Fees for customized investment options will remain at 0.20 percent and the Public Treasurers' Investment Fund option will stay fee-free).
The nonprofit, which manages more than $5.9 billion in assets, is also boosting its customized investment options, adding mutual funds managed by Dimensional Fund Advisors and six new Vanguard index funds. UESP also is adding two new static investment options.
UESP executive director Lynne Ward said in a statement that the changes should better meet the needs of those saving for a child's higher education.
"Expanding the underlying funds available in the customized investment options and adding new static investment options gives college savers a well-rounded selection at a low cost," Ward said.
You don't need a minimum deposit to open a UESP account and the earnings are tax exempt when used for college expenses such as tuition and books. Utahns who contribute to a UESP also may be eligible for a state income tax credit.
Utah Educational Savings Plan