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

Fidelity Arizona College Savings Plan

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:  Currently, you can contribute up to $318,000 to your Arizona 529 plan.  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 $1500 for married filers.  You also get the same benefit for federal income taxes.  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 Alabama.

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

College Savings Bank CollegeSure CD

This is a unique college savings plan that's similar to a certificate of deposit you buy at your bank.  The difference is that this CD pays an interest rate that is indexed to the rate of inflation of college costs, helping you hedge against the rising costs of college education.  Currently it pays 3% less than the rate of college inflation.  As an added benefit, the amount you invest and the interest is FDIC insured up to $100,000.

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 $318,000 to Arizona CollegeSure CD 529 plan. 

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 up to $318,000 to your InvestEd 529 plan

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.