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All Content Provided in Our Financial Aid section has been used with the permission of college.gov , we thank them for the opportunity to showcase their tips for families.
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 $1500 for married tax filers and $750 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
- Ability to change account beneficiaries annually
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