Visit UESP's Internet site at: http://www.uesp.org.

Each Utah taxpayer is entitled to an income tax deduction of up to $1,410 per beneficiary for contributions to a UESP account during the tax year. A married couple can deduct up to $2,820 per beneficiary on a married filing joint return. Contributions are reported in box 1 of form TC-675H, "Statement of Withholding for Utah Educational Savings Plan."

Keep form TC-675H with your records. If you have any questions about UESP, call 1-800-418-2551.

The Utah Educational Savings Plan (UESP) allows parents, grandparents, and other adults to save money tax-free for the college costs of their children/grandchildren. UESP benefits include:

1. All contributions and earnings are free of federal and Utah income tax so long as the funds are used for the qualified college costs of the benficiary (also see: Federal publication 970 "Tax Benefits for Higher Education").

2. The Utah income tax form allows particpants to deduct up to $2,870 for 2003 and $2,940 for 2004 for each beneficiary on a joint return.

3. UESP offers the power of pooling. Pooling funds through UESP enables college savers to benefit from the competitive market rates without bearing the furden of costsly transaction charges or service fees.

4. Interest earned by Option 1 participants is augmented by an endowment fund.

5. Fees are the lowest in the nation for accounts above $10,000. There are no fees for Option 1.

The funds saved through UESP can be used nationwide for qualified higher education expenses at any two-year or four-year accredited college or university, or any Utah applied techhology center. The maximum cumulative contributuion per beneficiary is $280,000 for 2003 ($300,000 for 2004).

To claim the deducation on the state income tax return, participants must complete a participation agreement form and have the investment received and posted by UESP by December 31 of the tax year. UESP will send a form TC-675H to each participant, stating the amount of the tax-year investments to UESP. The deduction is claimed on line 13 (code 73) of the Utah Individual Income Tax return, TC-40.

To participate in the plan, request an enrollment kit from UESP by calling (800) 418-2551 or 321-7201, or by mailing to UESP, P.O. Box 510423, Salt Lake City, UT 84151-0423. Enrollment forms can also be downloaded from the UESP internet site, http://www.uesp.org, or picked up from their offices at 60 South 400 West, Salt Lake City, Utah.

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