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UTAH

Utah Educational Savings Plan Trust

Type: Savings

Phone: 800-418-2551

State tax deduction for residents: Deduction of up to $1,435 per year ($2,870 for married couple) in 2003: $1,470 ($2,940) in 2004.

Open to nonresidents: Yes

Refund provisions: Penalty of 100% of earnings in first two years, then 10% of earnings.

Minimum/maximum contributions: $300 / $300,000

Utah's plan stands out for its remarkably low expenses -- and its simplicity. The plan uses just two Vanguard index funds (one stock, one bond) to build its age-based portfolios. The more aggressive choice remains entirely in stocks until the beneficiary is age 10. You can boost or reduce your exposure to stocks with separate contributions to a 100% stock or 100% bond account. Asset-management expenses are a low 0.35%; there's also an annual account fee of up to $25. All expenses are waived for investments in the fixed-income option.

State College Savings Plans