House Bill 225 would also allow participants to establish accounts for beneficiaries over the age of 18, but contributions to such accounts would not qualify for Utah income tax benefits. Requests have been received from parents with a child in high school who want to set up UESP accounts for that child because the parents realized the significant educational costs they will soon be facing. They were disappointed to learn that they were too late because their child was over the age of 16 and no longer eligible to be a beneficiary. In Utah, many students delay or interrupt their college education to serve in the military or as missionaries. Those students can benefit from the proposed increase in age limit because their UESP accounts can earn income during their two year absence even if the accounts are not established until they are in high school.
Most states have no maximum age requirement.
Iowa and Mississippi have a maximum age limit of 18. 4. The proposed amendment would remove that concern and provide opportunities for older Utahns to receive the same benefits provided in other states. The fiscal impact would be minimal. The Utah State Tax Commission has clarified that each taxpayer is entitled to a deduction for contributions to a UESP account. This is a significant incentive for extended families.