Education Plans

Annuities

Tax-Qualified Plans, premiums are tax deductible and the earnings accumulate tax-free throughout the years. You must pay regular income taxes on all withdrawals, at the time of the withdrawals.

Non-Qualified Plans, premiums are NOT deductible but the earnings accumulates tax-free throughout the years. You must pay regular income taxes on earnings withdrawals only, at the time of the withdrawals.


Fidelity Arizona College 529 Savings Plan

The Fidelity Arizona College Savings Plan is a tax-advantaged 529 plan, open to U.S. residents. The plan is sponsored by the Arizona Commission for Postsecondary Education.

Tax Advantages

Earnings

Any earnings grow federal income tax deferred

Contributions

Arizona residents and taxpayers are eligible for an increased state tax deduction on 529 contributions. The annual tax deduction shall not exceed $2,000 for single individuals and $4,000 for married couples filing jointly.

Withdrawals

Qualified withdrawals (withdrawals for education expenses) are free from federal and Arizona state income taxes.

Account Details

Minimum initial investment

$50, or $15/month ($45/quarter) with automatic investments

Account maximum

$412,000 per beneficiary


Life Insurance

Desired amounts can be purchased on the premium payer and the beneficiary, thus insuring that if either of them pass-away the full benefit is paid-in-full, tax-free. The insurance plan can also have a disability clause which pays the premium in the event the premium payer is disabled. The cash build-up in the plan accumulates tax-free and regular income tax is paid on the earnings only of the plan at the time of withdrawals. There are no maximum amounts that can be paid into the life insurance plan.

Of course you can call the Tony Waalkens Agency at 520-378-2141 or send an email to AzFinSe@cox.net and get immediate help!