The Arizona Family College Savings Program has officially surpassed $1 billion in assets.
This major milestone comes just 16 years after the first account was opened in 1999, according to a press release. Today the program comprises more than 75,000 savings accounts intended for the college expenses of future students.
The Arizona Family College Savings Plan is a state sponsored 529 plan designed to provide a parent, grandparent or future student an opportunity to save for educational expenses in a tax-deferred manner. Additionally, no taxes are paid on account earnings when savings are used for qualified college expenses, according to the release.
The State of Arizona also provides an annual Arizona state income tax deduction for 529 plan contributions of up to $2,000 for individual tax filers, and up to $4,000 for married couples filing jointly.
“We are thrilled to have reached this important milestone and look forward to seeing the results of the first billion dollars in terms of college degrees,” stated Dr. April Osborn, Executive Director for the Arizona Commission for Postsecondary Education, in the release. “According to research by the Center for Social Development, children with any college savings are six times more likely to attend a four-year college than children with no dedicated college savings account. A 529 plan is truly one of the best investments a family can make for their child’s future.”
The State of Arizona offers one of the most diversified 529 plans in the country with a wide variety of choices offered through three well-respected financial institutions: College Savings Bank, Fidelity Investments and Ivy Funds InvestedEd. Investment options include various CD’s, advisor-sold and direct-sold mutual funds, index funds, age-based portfolios and customized strategies. A 529 plan can be opened with as little as $15 per month and savings can be used at most accredited institutions anywhere in the United States and abroad, according to the release.
The Arizona Family College Savings Program is a Section 529 College Savings Plan sponsored by the State of Arizona through the Arizona Commission for Postsecondary Education. To learn more, call 602-528-2435 or visit AZ529.gov.