Employers, trusts, and other entities may contribute.
A trust, corporation or other entity that opens an Institutional Account can be the account owner. Entities have deposit rates of a single-filer (2026 in Utah maximum $2,560 per beneficiary).
The account owner then designates an account agent who serves as the contact person and acts on behalf of the account. The account agent can be a trustee, corporate officer or other person authorized by the entity.
The Institutional Account owner retains sole control of the Institutional Account, even after the beneficiary becomes an adult.
Don wants the best for his 15 employees and their children. As CEO, he starts accounts for up to $1,000 per employee per year to split between themselves (to fund either qualified student debt repayment or their continuing education) and their children’s accounts.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.