Why AZ529 Savings Plans are the gifts that keep on giving

State treasurer outlines how Arizonans can grow their students’ education savings tax-free

Every child deserves access to an excellent education that prepares them for lifelong success with opportunities to pursue their future dreams. In my role as treasurer, I am committed to expanding access to higher education for all Arizona families, whether it is through a traditional college pathway, vocational education, apprenticeship programs or workforce development. A higher education savings plan is a practical way to meet these goals.

The holiday season is a perfect time to give the gift of education. From parents, to grandparents, aunts and uncles, I encourage families during this time of year to consider the long-lasting value of contributing to an AZ529 Education Savings Plan to give to loved ones. These contributions offer a unique gift that supports their higher educational aspirations and future success all while the earnings grow tax-free.

Here are four ways to help bring this special gift of an AZ529 Plan contribution to life this holiday season, ensuring it's a memorable and meaningful experience for everyone:

Inspire them with a career costume

Give your little one a chef’s hat, astronaut costume, or another career dress-up option with a note saying you believe they can be whatever they desire in the future, and that you have contributed to their AZ529 Plan to help them achieve their future dreams.

Help them learn more about different careers

Find a book about a future career that they might find interesting, such as a "Dream Job," and then give them the book with a bookmark that says you have contributed to an AZ529 Plan to support their future dream career.

Experience the future

Take children to a museum or activity that helps inspire a future career, or purchase a season pass to the Science Center, Natural History Museum, Musical Instrument Museum or other destination. When they see the endless possibilities of what they can accomplish in the future, let them know that you have contributed to their AZ529 account.

Split it 50/50

If a physical toy or gift to unwrap is a must, try splitting the cost of what you normally budget for the entire present and take half the funds to spend on the physical gift item while contributing the other half of that amount to donate to the child's AZ529 account.

We also offer free downloadable holiday cards on our website to make it simple to share your donation and support. As family members choose to contribute to a child’s AZ529 Plan this holiday, they are doing more than giving a gift, they are opening doors for a child’s future dream career.

What is the AZ529 Education Savings Plan and who can contribute?

The AZ529 Education Savings Plan offers a tax-free way to set aside money for college, community college, vocational training, trade school and other educational opportunities after high school.

Funds can be used for accredited in-state or out-of-state academic institutions. Arizona residents can receive a dollar-for-dollar state tax reduction for contributions made to an AZ529 account each year — up to $2,000 per beneficiary or $4,000 per beneficiary depending on filing status.

Funds grow tax-free and remain so when used for a wide variety of qualified educational expenses. Additionally, unused AZ529 funds can now be rolled over into a Roth IRA — up to a $35,000 lifetime limit — without income tax or penalties. Friends and family members can also contribute to a child’s AZ529 account and receive the same tax benefits.

Investing in a child's education is a unique and meaningful gift that will go a long way. The smart financial choices and planning you do now for your child’s or grandchild’s future can offer the education they desire while securing the financial freedom they deserve.