529 PLANS

Ivy Funds InvestEd Plan

Arizona

The Arizona Ivy Funds InvestEd Plan is an advisor-sold 529 savings program that 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. To find a financial advisor in your area, use the Directory of Financial Professionals.

5-Cap Rating

Resident:
Non-Resident:

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories. (Scale 0 to 5; 5 is highest)

Performance Costs Features Reliability Resident Upgrade
3.83 3.76 2.73 3.40 0.15

Find an advisor

Enroll in Ivy Funds InvestEd Plan through a financial advisor. Search our directory of qualified financial professionals to find one near you.

General

Program type:

Savings

How to enroll:

Enroll through a financial advisor. Find a Professional

Initial year of operation:

2001

State agency(ies):

Arizona Commission for Postsecondary Education

Program manager:

Waddell & Reed, Inc.

Program distributor:

Waddell & Reed, Inc.

Manager contract term:

Through November 18, 2017.

Eligibility

State residency requirements:

None

Who can be a participant/owner in the program?

U.S. citizens and resident aliens of legal age, state/local government agencies, and 501(c)(3) organizations.

Significant time or age restrictions imposed by the program:

None

Contributions

Maximum contributions:

Accepts contributions until all account balances in Arizona's 529 plans for the same beneficiary reach $419,000.

Minimum contributions:

With lump-sum contributions, the minimum initial contribution is $750 per fund and subsequent investments do not have a limit. With the automatic investment plan, the initial opening account minimum is $150 per fund and the subsequent contribution level is $50 per month. No account minimum to establish an account via payroll deduction or salary deferral.

Investment Options

Age-based investment options:

Savings 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.

Underlying fund allocations:

Click here, you need Microsoft Excel to open this document.

Investment performance link:

Click here to visit, link to the program website containing most current performance data for InvestEd Portfolios. Click on each portfolio, then select the "Performance" tab.

Portfolio Fees & Performance Lookup

Click here to visit, pricing and performance details for each portfolio in each share class. Data can be plugged into FINRA's 529 Expense Analyzer.

Fees & Expenses

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 0.60% to 0.88% in the InvestEd Portfolios; 0.75% to 1.20% in the Ivy Fund Portfolios; 0.74% in the Ivy Money Market portfolio (no distribution fee).

Total asset-based expense ratio:

0.89% - 1.05% in the InvestEd Portfolios
1.00% - 1.45% in the Ivy Funds
0.74% in the Ivy Money Market portfolio

Broker loads and commissions:

Class A Growth Portfolio and Class A Balanced Portfolio:
Maximum initial sales charge: 5.75%
Dealer: 5% commission and 0.25% annual trail beginning immediately

Class A Conservative Portfolio:
Maximum initial sales charge: 4.25%
Dealer: 3.60% commission and 0.25% trail beginning immediately

Class E Ivy Funds (individual fund option) except Limited-Term Bond Fund and Money Market Fund:
Maximum initial sales charge: 5.75%
Dealer: 5% commission and 0.25% annual trail beginning immediately

Class E Ivy Funds Money Market Fund:
Maximum initial sales charge: 0%

Class E Ivy Funds Limited-Term Bond Fund:
Maximum initial sales charge: 2.50%
Dealer: 2% commission and 0.25% annual trail beginning immediately

Class B: This share class was closed in early 2006

Class C: This share class was closed in early 2006

Breakpoint pricing:

Sales load (dealer commission):

All portfolios except Conservative and Money Market:
Less than $50,000 - 5.75% (5.0%)
$50,000 - $99,999 - 5.25% (4.0%)
$100,000 - $199,999 - 4.75% (4.0%)
$200,000 - $299,000 - 3.5% (2.8%)
$300,000 - $499,999 - 2.5% (2.0%)
$500,000 - $999,999 - 1.5% (1.2%)
$1 Million and over - 0.0% (0.5%)

Conservative Portfolio:
Less than $50,000 - 4.25% (3.6%)
$50,000 - $99,999 - 3.75% (2.75%)
$100,000 - $299,999 - 3.25% (2.75%)
$300,000 - $499,000 - 2.5% (2.0%)
$500,000 - $999,999 - 1.5% (1.2%)
$1 Million and over - 0.0% (0.5%)

Class E Ivy Limited-Term Bond:
Less than $249,999 - 2.50% (2.0%)
$250,000 and over - 0.0% (0.0%)

Does breakpoint pricing include non-529 assets under rights of accumulation policies

Yes, purchases of shares of any of the funds in the Ivy Family of Funds/ and or Waddell & Reed InvestEd Portfolios or Waddell & Reed Advisors Funds are eligible for grouping with your account.

Taxes and other Benefits

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.

Value of in-state tax benefits:

At the maximum Arizona tax rate of 4.54% the tax deduction is worth as much as $91 ($182 joint) in Arizona tax savings. Because Arizona has made the deduction available to contributions to any 529 plan, this value does not have to be factored in when comparing plans.

State tax recapture provisions:

The principal portion of nonqualified withdrawals from this plan are included in Arizona taxable income to the extent of prior Arizona tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability, withdrawals made on account of the beneficiary's receipt of a scholarship, or rollovers.

State tax treatment of qualified distributions:

Qualified distributions from Arizona and non-Arizona 529 plans are exempt.

State tax treatment of rollovers:

Arizona follows federal tax-free treatment.

Does the sponsoring state exclude the value of an account for state financial aid purposes?

Yes

Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?

No

Does the program have a formal agreement with a rewards program or outside scholarship program?

No

Statutory protection of an account from creditors:

None.

Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

InvestEd 529 Plan Program Overview (link to PDF)

Contact

Web site:

Click here to visit

Telephone:

1-800-777-6472

Telephone for broker use:

1-800-532-2780

State News

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