College savings – start early
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According to the National Center for Public Policy and Higher Education, 61 percent of parents believe that their children should go to college after high school. Parents, who start preparing early for college and become familiar with the options for financial aid and college savings, will help make college a reality for their children.
One college savings plan in particular is the Arizona 529 Plan. It’s named after Section 529 of the Internal Revenue Code sponsored by the State of Arizona, and is designed to provide a parent, grandparent, or anyone else an opportunity to save for a child’s educational dreams in a tax-deferred savings vehicle.
The Arizona Commission for Post-secondary Education notes that Arizona offers one of the most diversified 529 plans in the country that includes the following benefits:
- Qualified distributions are exempt from federal and Arizona state income taxes
- Tax deductions for Arizona taxpayers contributing to a 529 plan up are up to $1500 for married tax filers and $750 for single filers
- Assets are not considered when determining Arizona financial aid awards
- Savings can be used at all U.S. DOE accredited universities, colleges, private colleges and vocational schools in the U.S., as well as eligible foreign institutions
- Allows for anyone to make contributions
A complete College Savings Planner is available for download on the Commission’s website at az529.gov