What is a 529 Plan?
The Arizona 529 Plan is a college savings plan named after Section 529 of the Internal Revenue Code sponsored by the State of Arizona. The 529 Plan is designed to provide a parent, grandparent, or anyone else an opportunity to save for a child’s educational dreams within a tax-deferred savings vehicle.
The State of Arizona offers one of the most diversified 529 plans in the country. Arizona’s 529 Savings Plan benefits include:
Qualified distributions are exempt from federal and Arizona State income taxes
Tax deductions for Arizona taxpayers contributing to a 529 plan up to $4,000 for married tax filers and $2,000 for single
College savings offered through multiple providers that include choices of CD’s, mutual fund options, and age-based portfolios
Contributions to accounts grow on a tax-deferred basis
Assets are not considered when determining Arizona financial aid awards
Savings can be used at all U.S. DOE accredited universities, colleges, private colleges, and vocational schools in the U.S., as well as eligible foreign institutions
Allows for anyone to make contributions
Ability to begin saving with as little as $15 a month, although each plan provider may differ
Ability to change account beneficiaries anytime
The Arizona Family College Savings Plan is not insured by the State of Arizona or any of the program providers. Neither the principal deposited nor the investment return is guaranteed by the State of Arizona or the program providers.