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In the state of Arizona, there are a number of different 529 plans, which a person is able to contribute towards for a college education for the beneficiary named in it. All the Arizona 529 plans have been designed in order to help families meet the costs of providing higher education for their children when they reach college age.
However, in this particular article we are going to be taking a closer look at a 529 college savings account in the state of Arizona called "The Arizona Family College Savings Program". This one offers people a very easy and flexible way for them to save the funds necessary to help pay towards a college education. Nevertheless, as well as being such an easy program to utilize there are other benefits to be had from this particular plan.
Benefit 1
All earnings as they grow on the funds that have been invested are tax deferred. Moreover, any withdrawals made to help towards higher education expenses are exempt from both Federal and Arizona Income Taxes having to be paid on them.
Benefit 2
The funds that a person contributes are managed by professionals from three of the most experienced and trusted financial institutions in the State of Arizona. Namely Fidelity Investments, Waddell & Reed and the College Savings Bank. Benefit 3
The person who chooses to enroll and contribute to such a plan in order to cover the cost of college tuition for their own child or someone else's has a number of different investment choices to choose from. There are some, which are age based, some, which are static, some which are relating to individual mutual funds and others which are either indexed funds or CDs. Benefit 4
There is no limit on the maximum contribution to 529 plans a person can make but once the balance has reached $318,000 no further contributions are allowed to be made to the plan. You have the choice either to make a lump sum contribution of $250 or you can arrange to have as much as $50 per pay period taken directly from your salary. The other way a person can make contributions is by deposit $100 or more each month by setting up a transfer from a checking account. Benefit 5
With this particular Arizona 529 plan, there are no application or enrollment fees to be paid. There are also no fees that a person will be required to pay towards the maintenance and management of this particular 529 college savings plan. However, it should be noted that contributions made are not deductible from a person's income tax return currently, but from 2008 until 2012, this will change.
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