Saving for College the Smart way - 529 Plans          

 

Arizona 529 Plan

Arizona has three 529 college savings plans under the umbrella of the "Arizona Family College Savings Program".  The state offers traditional direct and advisor sold funds, in addition to a unique certificate of deposit tied to the cost of college education.

Fidelity Arizona College Savings Plan

The Fidelity Arizona College Savings Plan is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses. 

Type: Direct

Fund Family: Fidelity

Minimums: To get started you can deposit $50 or set up a monthly payment plan of only $15. 

Maximum Contributions:  As of January 2010 there's a combined account maximum of $374,000.  Of course, your total amount in the plan can be higher as your investments group.  529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits:  Good news for Arizona residents -- by investing in your state's 529 plan, you can deduct up to $750 on your state income taxes for single filer and $1,500 for married filers.  You also get federal income tax benefits as you do not pay income tax on your earnings.  Out-of-state participants still get the federal tax benefits.

Residency: The Fidelity Arizona Colleges Savings Plan is open to all United States residents, not just those in Arizona.

You can learn more about the this 529 plan at the official web site.

Continued below...

College Savings Bank

This is a unique college savings plan that's lets you invest your 529 plan money in low risk accounts that are FDIC insured. You can choose from the CollegeChoice CD 529 Savings Plan, InvestorSure CD, Fixed Rate CD, or or HONORS 529 savings account, which is a high yield savings account.

Type: Direct

Fund Family: n/a

Minimums: Get started with a $250 deposit.  Ongoing contributions are as little as $25 if you set up payroll direct deposit.

Maximum Contributions:  Currently, you can contribute up to $340,000 to Arizona CollegeSure CD 529 plan. (Verified on plan web site May 2012.)

Tax Benefits:  Arizona residents who invest in the Arizona CollegeSure CD can deduct up to $750 on your state income taxes for single filers and $1500 for married filers each year.  You also get the same benefit for federal income taxes.  Out-of-state participants still get the federal tax benefits.

Residency: The College Savings Bank CollegeSure CD is open to all United States residents.

You can learn more about the this 529 plan at the official web site.
 

Arizona InvestEd 529 Plan

The InvestEd 529 college savings plan is a traditional 529 plan and may be purchased through a financial advisor.

Type: Advisor.  Please contact a financial advisor in your state for assistance.

Fund Family: Waddell & Reed

Minimums: Accounts are $500 to open or set up a $50/month plan.

Maximum Contributions:  Currently, you can contribute until your account balance reaches $374,000 (verified on plan web site May 2012).

Tax Benefits:  Arizona residents who invest in this 529 plan can deduct up to $750 on your state income taxes for single filers and $1500 for married filers each year.  You also get the same benefit for federal income taxes.  Out-of-state participants still get the federal tax benefits.

Residency: The Invested529 plan is open to all United States residents.

You can learn more about the this 529 plan at the official web site.


 


 

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