Kimberly Yee Celebrates Growth in Arizona's 529 Education Savings Plan

Arizona Treasurer Kimberly Yee recently honored 20 fifth and sixth graders as winners of the state's annual college savings essay contest, awarding each student $529 to jump-start their education funds.

The question the students answered was "What Is Your Dream Job and How Do You Plan on Achieving It in the Future?" 

Their essays described future careers ranging from engineers and pediatricians to small business owners, cosmetologists, and photographers, all requiring education beyond high school.

"This year, 876 aspiring students brought their dream jobs to life through writing about how they will prepare for their future education," Yee said.

"These funds can be used for educational expenses such as college tuition, trade school, or workforce development. Whatever educational path the students choose, their AZ529 funds will be there to help them succeed," she added.

The contest winners represent schools from all 15 Arizona counties, including district, charter, private, Bureau of Indian Education, and homeschools. Judges selected the 20 winners from 876 entries based on ideas, organization, and originality of the content.

Broader Success

Since she began overseeing Arizona's 529 Education Savings Plan, more than 61,000 new accounts have been opened in the past five years. The plan's total assets have grown 72% to a record $2.8 billion.

"This contest inspires our young students to dream about their future careers and encourages families to plan for how they can best support their financial future," Yee said.  "Since I began administering the AZ529 Plan, 61,208 new accounts have been opened in just 60 months, which is so important as more families recognize the endless opportunities that come with saving for their children's future education."

How It Works

The savings plan allows families to set aside money for educational expenses in a tax-advantaged way. 

Arizona residents can deduct up to $2,000 or $4,000 per beneficiary from their state taxes each year, depending on filing status. The money grows tax-free and can be withdrawn without taxes when used for qualified education costs.

"It's never too early, and it's certainly never too late, to start saving for a child's education," Yee emphasized.

The funds can be used at most accredited colleges, universities, trade schools, and vocational programs nationwide. 

Families can start accounts with small monthly contributions, and friends and relatives can contribute while earning the same tax benefits.