• Earnings accumulate deferred from federal and Utah state income taxes. Withdrawals are tax-free when used to pay for qualified education expenses of your beneficiary. Qualified expenses include K-12 tuition expenses, costs for registered apprenticeships and payments on qualified education loans.
• A Utah taxpayer who is an account owner, including a Utah trust, may take a Utah state income tax credit on contributions up to certain limits if the beneficiary was younger than age 19 when established as the beneficiary on the account.
• Earnings on nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty, as well as state and local income taxes.
• Utah corporations can claim a state income tax deduction for contributions up to certain limits.
• If the age 19 requirement is met, the account owner is eligible for the Utah state income tax credit or deduction for the life of the account each year a contribution is made. More on Tax Advantages

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