Preparing for the future with AZ529

All this news of hurricane Sandy has brought planning for the future to my thoughts. Not only preparing for my family’s physical needs but also our monetary needs in the future. Currently my kids are 5 and 7 and sadly we have not even begun to think about saving money for their college educations. Right now it seems like college is a long ways off, but I know it will be here in a snap.

I was excited to learn about the AZ family college savings plan. (AZ529 plan). With a 529 plan you can contribute monthly to a savings account and have those contributions be tax exempt at both the federal and state levels.

I spent some time looking at the AZ529 website and I got tons of great information. Here is some of the things that really stuck out to me about the AZ529 plan:

Married couples filling jointly can deduct up to $1500 a year
The money in your 529 account is not considered when determining financial aid awards. Meaning that when it’s time to determine financial aid, you won’t be penalized for planning ahead and saving your money.
The 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
Anyone can make contributions. What a great idea for grandparents and other family members. Christmas time is coming right up!
The best news for me is that you can start contributing with as little as $15 a month. We don’t have a lot of extra money each month, but $15 is totally doable and I can feel good that I am doing something to plan for the future.

Keep in mind that it is a tax deferred plan, meaning that when you withdraw the funds you will be required to report the income. You can get even more information about the tax incentives offered on the AZ529 website.

This is my youngest child. The two things she loves most in the world is coloring and piggy banks. So if given the opportunity to color a piggy bank, she is in heaven. Everyday that I look at my kids, I want the best for them now and in the future. I know that is what every parents wants. I am glad I had the opportunity to learn more about the #AZ529 plans. It has really gotten me excited to learn more and start saving for my childrens bright future.