Quick facts about 529 college savings plans

• What: A college savings program created under Section 529 of the Internal Revenue Code to help families save for higher education.

• Why: The money invested in 529 college savings plans is tax-exempt if that money is used for qualified higher-education costs. Qualifying institutions include accredited colleges, universities or applied technology centers — public or private.

(The federal tax exemption for withdrawals will expire after Dec. 31, 2010, unless Congress makes the tax exemption permanent or extends the sunset date. Currently, there are bills under consideration in the House and Senate that would make that exemption permanent.)

• Advantages of the Utah Educational Savings Plan: Morningstar, in its ranking of 529 plans, points to UESP's low fees and its offerings of Vanguard mutual funds. UESP administrator Lynne Ward also noted that Utah resident investors are eligible for a state tax deduction. Single filers receive a $1,510 tax exemption, per beneficiary. On a joint return, the deduction is $3,020. Utah resident investors also are exempt from the fund's $25 annual account maintenance fee.

• For more information on UESP: Call 801-321-7188 or visit www.uesp.org.