What is an Arizona 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-advantaged savings vehicle.
The state of Arizona’s 529 Savings Plan is one of the most diversified in the country, providing the following benefits:
The ability to begin saving with as little as $15, $25 or $150 a month, depending on the plan provider you select
Assets are not considered when determining Arizona financial aid awards
Contributions to accounts grow on a tax-free basis
Qualified distributions are exempt from federal income tax
Savings can be used at most accredited public or private universities, colleges, and vocational schools in the United States, as well as eligible foreign institutions
Qualified distributions are exempt from Arizona income tax for Arizona taxpayers