The Arizona InvestEd Plan broker 529 savings program features three fund-of-fund mutual funds from Waddell & Reed, available as either static investment options or as part of an age-based strategy, plus 16 individual-fund portfolios invested in Ivy Funds mutual funds.
- Summary: The Arizona InvestEd Plan broker 529 savings program features three fund-of-fund mutual funds from Waddell & Reed, available as either static investment options or as part of an age-based strategy, plus 16 individual-fund portfolios invested in Ivy Funds mutual funds.
- Program type: Savings
- Telephone: 1-800-777-6472
- Web site: Click here to visit
- Program manager: Waddell & Reed, Inc.
- State residency requirements: None
- Maximum contributions: Accepts contributions until all account balances in Arizona's 529 plans for the same beneficiary reach $396,000.
- Minimum contributions: With lump-sum contributions, the minimum initial contribution is $500. With the automatic investment plan, the minimum contribution level is $50 per portfolio per month via bank transfer and subsequently $25 per month. No account minimum to establish an account via payroll deduction or salary deferral.
- Age-based investment options: Contributions are placed into one of 3 portfolios?Growth (ages 0?8), Balanced (ages 9?15), or Conservative (ages 16 and up)?corresponding to the beneficiary?s age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
- Static investment options: Select among 3 fund-of-funds portfolios (Growth, Balanced, or Conservative) and 16 individual-fund portfolios each investing in a single mutual fund from the Ivy Funds family.
- Underlying investments: Ivy Funds and Waddell & Reed Advisors Funds.
- Enrollment or application fee: None, but contributions may be subject to a sales charge.
- Account maintenance fee: $20 annually for accounts with less than $25,000, waived for Arizona residents.
- Program management fees: None
- Expenses of the underlying investments: Ranges from 0.73% to 0.92% in the InvestEd Portfolios; 0.75% to 1.42% in the Ivy Fund Portfolios; 0.75% in the Ivy Money Market portfolio (no distribution fee).
- Total asset-based expense ratio: 0.98% - 1.17% in the InvestEd Portfolios
1.00% - 1.67% in the Ivy Funds; reflects a waiver of management fees, 12b-1 fees and/or shareholder servicing fees through July 31, 2014
0.75% in the Ivy Money Market portfolio
- Program match on contributions: None.
- State tax deduction or credit for contributions: Contributions to Arizona AND non-Arizona 529 plans of up to $2,000 per year by an individual, and up to $4,000 per year by a married couple filing jointly, are deductible in computing Arizona taxable income. The original sunset date of December 31, 2012 has been removed, thus making the deduction permanent.