529 Plans: Arizona

529 Plans: Arizona

Before we head out of the southwest corner of our amazing nation in our exploration of 529 plans across the country, we'll take a look at Arizona's offerings. As with all of our previous posts in this series, we're breaking down each state's 529 plans into things you might want to know. Here is the lowdown on Arizona's three plans:

All three plans have some similarities, including a maximum contribution level of $350,000 per beneficiary. Another similarity is the tax deduction benefits: contributions to a plan (Arizona or any other states' 529 plan) of up to $750 for singles and $1500 for couples are deductible. There are no state residency requirements for any of the plans and none offer any kind of matching program or incentive.

The Arizona Family College Savings Program – CollegeSure

This is direct-sold savings plan that offers three different CD plans to choose from and no aged-based options. Each CD plan – the CollegeSure CD, the InvestorSure CD, and the fixed-rate CDs – are FDIC-insured options. The CollegeSure CD features a variable interest rate in correlation to a private college tuition index while the Investor Sure CD has an interest rate that is related to the increase of the S&P 500 Index over a five-year period. The plan's third option, the fixed-rate CDs, have one- and three-year maturity options.

Each of the CollegeSure plan CD options feature a $250 minimum initial contribution and a $25 montly minimum thereafter. Contributions to the plan are held in an interest-bearing account until $250 is reached; then that amount purchases a CD.

The CollegeSure plan is the only one of Arizona's plans to have no fees associated with it.

Fidelity Arizona College Savings Plan

This 529 plan is direct sold and is a bit different than the CollegeSure plan described above. Minimum contributions to the plan are $50 initially with a $25 (lump sum plan) or $15 (automatic deduction option) subsequent contribution. There are two aged-based options plus eleven static options to choose from. While there are no enrollment or maintenance fees, there are some program management fees associated with this plan.

InvestEd Plan

This is the only adviser-sold plan offered in Arizona. It offers three age-based options plus sixteen individual fund static options. Minimum contribution to the InvestEd is $500 with a $50 per portfolio per month minimum after that or a $25 per pay period for the payroll deduction option. There is no enrollment fee, but accounts under $25,000 and not of Arizona residents are subject to a $20 annual account maintenance fee.

Stay tuned as we bring you more specific college savings plans from across the United States!

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