Program Description Supplement - my529

1 february 1, 2022my5291 Program Description SupplementFebruary 1, 2022, Supplement to the July 15, 2021, Program DescriptionRead this Supplement in conjunction with the July 15, 2021, my529 Program Description . Please read all documents carefully and keep them for future in Maximum Aggregate Account BalanceThis Supplement contains new information about: Change in Maximum Aggregate Account Balance ..12022 Contribution Amounts Eligible for Utah Tax Benefits ..2 Change in Year-End Tax Deadlines ..3 Change in the Federal Gift Tax Exclusion ..4 Change in the my529 Administrative Asset Fee ..5 Asset Fee Structure Table ..6 Approximate Cost of a $10,000 Investment Table ..7 Change In The Investment Management Fee For The Pimco Interest Income Fund ..8 Change In The Share Class For The Vanguard Total Bond Market Index Fund ..8 Change In The Enrollment Date Investment Option Allocations Table ..8 Change In Delivery Of Utah State Income Tax Form ..9 Change In Custodian Services ..9 DESCRIPTIONOn January 1, 2022, my529 increased the allowed maximum aggregate balance for a single beneficiary from $510,000 to $525, the following to replace the information on page 15 of the July 15, 2021, Program Description , Part 3, Contributions section, Basic Concepts subsection, sixth paragraph:The maximum aggregate account balance for all my529 accounts for the same beneficiary is $525,000.

2 Use the following to replace the information on page 18 of the July 15, 2021, Program Description , Part 3, Contributions section, Other Considerations subsection, Excess Contribution Limits subsection, second and third paragraphs:The maximum aggregate account balance of all my529 accounts for the same beneficiary is $525,000. This amount represents the maximum estimated qualified education expenses of an undergraduate and graduate degree, including room and board, at the highest-cost public or private eligible educational institution in the United States. Contributions that exceed the $525,000 maximum account balance across all my529 accounts for the same beneficiary will be returned to the person who made the contribution. Balances can grow through earnings beyond $525,000, but additional contributions will be the following to replace the information on page 74 of the July 15, 2021, Program Description , Part 13, Tables and Charts, Summary of Rules section, Dollar Amounts subsection, Maximum Aggregate Account Balances subsection: my529 will accept contributions for a beneficiary until all my529 account balances for that beneficiary reach $525, 1, 2022my5292 february 1, 2022, Supplement to the July 15, 2021, Program Description2022 Contribution Amounts Eligible for Utah Tax BenefitsDESCRIPTIONThe maximum contribution to a my529 account that qualifies for a Utah state income tax credit or deduction was raised, effective January 1, 2022.

3 The 2022 maximum contribution for individuals, trusts, and corporations is $2,130 per qualified beneficiary. The maximum contribution for married couples filing a joint return and for grantor trusts whose filing status is married and filing jointly, is $4,260 per qualified the following to replace the table on page 61 of the July 15, 2021, Program Description , Part 9, Tax Considerations, Utah State Tax Considerations section, Utah State Tax Credits and Deductions subsection:Utah State Tax Credits and DeductionsThe table below shows the tax credits and deductions available to Utah residentsTax FilerUtah Tax Credit2022 Maximum Quali-fying Contribution Per Beneficiary2022 Maximum Utah Tax Credit Per Beneficiary2022 Maximum Utah Tax Deduction Per $2,130$ $4,260$ $2,130$ Trusts (Filing Jointly) $4,260$ $2,130$ $2,130N/A$2,1301. Married couples are not required to have separate accounts for the same beneficiary to be eligible for the joint tax benefit. However, if each spouse does own an account for the same beneficiary, the tax benefit is limited to one joint tax credit per qualified beneficiary.

4 2. Utah-based flow-through entities, such as S-corporations, limited liability companies and partnerships, will receive a Utah state income tax form TC-675H ( my529 Tax Statement for Contributions, Withdrawals and Transfers). Such entities should then issue a Schedule K-1 to each applicable individual to divide the Utah State Income Tax the following to replace information on page 75 of the July 15, 2021, Program Description , Part 13, Tables and Charts, Summary of Rules section, Dollar Amounts subsection, Utah State Income Tax Credit/Deduction subsection:Utah taxpayers may not claim a Utah state income tax credit or deduction for contributions made to any other state s 529 plan. Utah Individuals For the 2022 tax year, Utah taxpayers filing an individual tax return can claim a Utah state income tax credit per qualified beneficiary for contributions up to $2,130. Utah taxpayers who are married and filing a joint tax return can claim a Utah state income tax credit per qualified beneficiary for contributions up to $4,260.

5 Utah Trusts For the 2022 tax year, Utah-based trusts can claim a Utah state income tax credit per qualified beneficiary for contributions up to $2,130. Utah-based grantor trusts whose grantor filing status is married and filing jointly can claim a Utah state income tax credit per qualified beneficiary for contributions up to $4,260. Utah Flow-Through Entities For the 2022 tax year, Utah-based flow-through entities, such as S-corporations, limited liability companies and partnerships, can claim a Utah state income tax credit per qualified beneficiary for contributions up to $2,130. Utah Corporations For the 2022 tax year, Utah-based corporations can claim a Utah state income tax deduction per qualified beneficiary for contributions up to $2, 1, 2022my5293 february 1, 2022, Supplement to the July 15, 2021, Program DescriptionDESCRIPTIONThe year-end tax deadlines applicable for the 2022 tax year have changed from those provided for the 2021 tax the following to replace the information on page 72 of the July 15, 2021, Program Description , Part 13, Tables and Charts, 2022 Year-End Deadlines section:2022 Year-End DeadlinesTo qualify for tax year 2022, account transactions must meet the following deadlines.

6 All documents must be received by my529 in good order to be : my529 does not guarantee that a transaction received on the last day my529 conducts business for that year will be completed on that in Year-End Tax DeadlinesOnline Process DeadlineMust be received by my529 before11:59 Process Deadline1 Mailed or hand-delivered documents must be received before 5 must be received before 6 , December 31, 2022 Friday, December 30, 2022 New AccountsSaturday, December 31, 2022 Friday, December 30, 2022 WithdrawalsSaturday, December 31, 2022 Friday, December 30, 2022 Investment Option ChangeSaturday, December 31, 2022 Friday, December 30, 2022 Incoming Rollovers (money received)N/AFriday, December 30, 2022 Transfers (between accounts with the same account owner)Saturday, December 31, 2022 Friday, December 30, 2022 Transfers (between accounts with different account owners)N/AFriday, December 30, 2022 Outgoing RolloversN/AFriday, December 9, 2022 Note1. A mailed contribution postmarked on or before the December 31, 2022, deadline but received in 2023 will be recorded as a 2023 tax-year the following to replace the information on page 75 of the July 15, 2021, Program Description , Part 13, Tables and Charts, Summary of Rules section, Year-End Deadlines subsection, Utah State Income Tax Credit/Deduction subsection:For contributions to count toward the Utah state income tax credit or deduction, contributions to Utah taxpayers accounts must be received online before 11:59 MT, Saturday, December 31, 2022.

7 Hand-delivered forms and contributions must be received at my529 offices by 5 MT, Friday, December 30, 2022. Faxes must be received by 6 MT, Friday, December 30, 2022. A mailed contribution postmarked on or before the December 31, 2022, deadline but received in 2023 will be recorded as a 2023 tax-year 1, 2022my5294 february 1, 2022, Supplement to the July 15, 2021, Program DescriptionChange in the Federal Gift Tax ExclusionDESCRIPTIONThe amount of a monetary gift that can be excluded from federal taxation has increased as of January 1, the following to replace the information on page 6 of the July 15, 2021, Program Description , Part 1, Introduction and Summary, Summary of the Plan section, Federal Taxes subsection, third bullet: There is no federal gift tax on annual contributions up to $16,000 ($32,000, if filing jointly). There is no federal gift tax on contributions up to $80,000 ($160,000, if filing jointly) per qualified beneficiary if a five-year averaging election is the following to replace the information on page 18 of the July 15, 2021, Program Description , Part 3, Contributions, How to Contribute to an Account section, Five-Year Gift Averaging subsection:For information on how to make a five-year averaging federal gift election of $80,000 ($160,000 for married couples), see Part 9, Tax the following to replace the information on page 59 of the July 15, 2021, Program Description , Part 9, Tax Considerations, Federal Tax Considerations section, Federal Estate and Gift Tax Considerations subsection, second paragraph:There is no federal gift tax on annual contributions to a 529 account up to $16,000 ($32,000, if filing jointly).

8 Additionally, a special Internal Revenue Service provision for 529 plans allows a single person to make a gift of $80,000 ($160,000, if married and filing jointly) to a single beneficiary in one year without creating a taxable gift if on IRS Form 709 they elect to treat the entire gift as a series of five equal annual gifts ($16,000 per year, single; $32,000 per year, married filing jointly). Additional gifts to the beneficiary from the same contributor during the five-year period are subject to federal gift tax the following to replace the information and tables on page 59 of the July 15, 2021, Program Description , Part 9, Tax Considerations, Federal Tax Considerations section, Federal Estate and Gift Tax Considerations subsection, sixth-eighth paragraphs:For example, the annual gift tax exclusion increased in 2022 from $15,000 to $16,000 for a single account owner, a difference of $1,000. The following table illustrates how a single person can make supplemental $1,000 contributions in years 2 through 5 of a five-year election that began in 2021.

9 Year 1 (2021)Year 2 (2022)Year 3 (2023)Year 4 (2024)Year 5 (2025)Initial Contribution$75,000 Averaged Gift$15,000$15,000$15,000$15,000$15,000 Additional Contributions$1,000$1,000$1,000$1,000 Account owners who file joint tax returns can also make supplemental contributions. For example, the annual federal gift tax exclusion increased in 2022 from $30,000 to $32,000 for the account owner and their spouse, a difference of $2,000. The account owner can make a $2,000 supplemental contribution to the same beneficiary each year remaining in the five-year election period, beginning with the year that the gift tax exclusion increased. The following table illustrates how account owners who file a joint tax return can make supplemental contributions of $2,000 in years 2 through 5 of a five-year period that began in 1 (2021)Year 2 (2022)Year 3 (2023)Year 4 (2024)Year 5 (2025)Initial Contribution$150,000 Averaged Gift$30,000$30,000$30,000$30,000$30,000 Additional Contributions$2,000$2,000$2,000$2,000 february 1, 2022my5295 february 1, 2022, Supplement to the July 15, 2021, Program DescriptionChange in the my529 Administrative Asset FeeDESCRIPTIONThe my529 Administrative Asset Fee has decreased by one basis point for all but one of my529 s 24 investment options as of October 1, the following to replace the information on page 7 of the July 15, 2021, Program Description , Part 1, Introduction and Summary, Summary of Plan section, Fees subsection, first and second bullet.

10 Administrative Asset Fees for Enrollment Date and Static investment options range from ($ per $1,000 invested annually) to ($ per $1,000 invested annually). The Administrative Asset Fee for Customized investment options is ($ per $1,000 invested annually).Use the following to replace the information on page 53 of the July 15, 2021, Program Description , Part 8, Fees, Fee Structure section, The my529 Administrative Asset Fee subsection, first bullet: The fee ranges from to ($ to $ per $1,000 invested annually), depending on which Enrollment Date, Static or Customized investment option is chosen for an the following to replace the information on page 53 of the July 15, 2021, Program Description , Part 8, Fees, Fee Structure section, my529 Asset-Based Fee Ranges subsection, first paragraph, first and second bullets:The total annual Asset-Based Fee ranges from to ($ to $ per $1,000 invested annually), depending on which investment option is chosen for an account.