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Compare 529 Plans
Plan
Summary
AZ529, Arizona's Education Savings Plan is a Fidelity-managed 529 plan follows the same approach as other Fidelity plans in Connecticut, Delaware, Massachusetts and New Hampshire. It features three age-based options; one using Fidelity Series actively managed funds; one using Fidelity Series index funds; and a third using a combination of the two. The plan also offers 10 static options, one option that invests in an interest-bearing deposit account, and a stable value option that invests in a separately managed account that may invest in individual securities or Fidelity mutual funds and investment contracts issued by third-party insurance companies or banks.
Union Bank & Trust Company succeeded Oppenheimer Funds, Inc. as program manager of the Bright Start College Savings Program in July 2017. The Illinois direct-sold Plan features three age-based options using either a multi-firm or index-based strategy, three target portfolios, three index target portfolios, individual fund portfolios from a number of fund families and an FDIC-insured option.
Program type
Savings
Savings
How to enroll
Enroll directly with the program.
Enroll directly with the program.
Initial year of operation
2005
2000, but substantially changed in July 2007 and again in July 2017.
State agency(ies)
Office of the Arizona State Treasurer
Illinois State Treasurer
Program manager
Fidelity Investments
Union Bank & Trust Company
Program distributor
Fidelity Brokerage Services LLC
Union Bank & Trust Company
State residency requirements
None
None
Who can be a participant/owner in the program?
U.S. citizens and resident aliens at least 18 years old, UGMA/UTMA custodians, and legal entities.
U.S. resident individuals, UGMA/UTMA custodians, a Trust, and legal entities.
Significant time or age restrictions imposed by the program
None
None
Maximum contributions
Accepts contributions until all account balances in Arizona's 529 plans for the same beneficiary reach $575,000.
Accepts contributions until all account balances in Illinois' 529 plans for the same beneficiary reach $500,000.
Minimum contributions
There is no minimum to open an account. With the automatic investment plan, the minimum contribution level is $15 per month or $45 per quarter.
No minimum.
Does the program offer an e-gifting platform for receiving gift contributions?
This plan offers an online tool to share a gift contribution link with family and friends.
This plan offers an online tool to share a gift contribution link with family and friends.
Age-based/Enrollment Year investment options
Choose between 3 age-based options, one invested in Fidelity Series actively managed funds, another invested in Fidelity Series index funds, and a Fidelity Blend option with a combination. Contributions are placed into the portfolio corresponding to the beneficiary's age. The portfolios automatically shift to a more conservative investment allocation over time.
Choose between Multi-Firm Age Based Portfolios and the Index Age Based Portfolios, each containing 9 portfolios in Aggressive, Moderate and Conservative glidepaths. Contributions are placed into the portfolio corresponding to the beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
Static investment options
Select from 6 multi-fund portfolios, 4 individual-fund portfolios, a Bank Deposit Portfolio and a Stable Value Portfolio.
Select among three Multi-Firm Target Portfolios and three Index Target Portfolios; both offer Equity, Balanced, and Fixed Income options, sixteen individual options, and an FDIC-insured option.
Underlying investments
Fidelity Investments. For the Bank Deposit Portfolio only, a deposit in an FDIC-insured interest-bearing account (Wells Fargo).
Vanguard, T. Rowe Price, DFA, Dodge & Cox, BlackRock, Baird Funds, Ariel Investments, Invesco, BNY Mellon, Nuveen, DWS.
Enrollment or application fee
None.
None.
Account maintenance fee
None.
None.
Program management fees
0.09% for the Fidelity index fund options (includes 0.02% state fee); 0.17% for the Fidelity fund options (includes 0.045% state fee); 0.12% for the Fidelity Blend options (includes 0.04% state fee). For the Bank Deposit Portfolio, fees vary from 0.00% to 0.10% (including 0.05% state fee) based on the Federal Funds Target Rate.
0.10% (includes 0.025% state administrative fee).
Index Portfolios: 0.07% (no state administrative fee).
No state administrative fee for the Vanguard Federal Money Market 529 and Bank Savings portfolios
Expenses of the underlying investments
Ranges from 0.02% to 0.05% annualized in the Fidelity index fund portfolios, from 0.30% to 0.78% annualized in the Fidelity funds portfolios, 0.28% to 0.48% in the Fidelity Blend portfolios, and 0.45% in the Stable Value Portfolio. For the Bank Deposit Portfolio, there is no underlying fund expense. There is, however, a Bank Administration Fee, which ranges from 0.00%-0.40% and is based on the Federal Funds Target Rate.
Index Portfolios:
0.02% to 0.31% Age-Based & Static Portfolios (portfolio weighted average)
0.02% - 0.67% Individual Fund Portfolios
Multi-Firm Portfolios:
0.07% to 0.30% Age-Based & Static Portfolios (portfolio weighted average)
None for the Bank Savings
Total asset-based expense ratio
0.10% - 0.95%
0.07% - 0.77%
Program match on contributions
None.
Illinois will automatically deposit a $50 seed deposit into a 529 college savings account for every child born or adopted in the state beginning in 2023.
State tax deduction or credit for contributions
Contributions to Arizona AND non-Arizona 529 plans of up to $2,000 per year per beneficiary by an individual, and up to $4,000 per year per beneficiary 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.
Contributions to an Illinois 529 plan of up to $10,000 per year by an individual, and up to $20,000 per year by a married couple filing jointly, are deductible in computing Illinois taxable income. For a rollover contribution, only the principal portion is eligible for the deduction. Contribution deadline is December 31 postmark. For tax years ending on or before December 31, 2024, employers may claim a credit against Illinois tax for 25% of matching contributions made to an employee's account in an Illinois 529 plan, with a maximum annual credit of $500 per employee. Unused credits may be carried forward for five years.
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.
Effective January 1, 2007, rollovers from this plan to an out-of-state program are included in Illinois taxable income to the extent of prior Illinois deductions. Effective January 1, 2009, nonqualified distributions from this plan are included in Illinois taxable income to the extent of prior Illinois deductions.
State definition of qualified expenses
The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. Distributions from a 529 account directly to a Roth IRA are considered a qualified expense for state income tax purposes.
The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs, participation in an apprenticeship program, and interest and/or principal on qualified education loans up to a $10,000 lifetime cap. This does not include tuition for elementary or secondary education. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.
State tax treatment of qualified distributions
Qualified distributions from Arizona and non-Arizona 529 plans are exempt.
Qualified distributions from an Illinois 529 plan are exempt. Qualified distributions from a non-Illinois plan are exempt provided the plan meets certain disclosure requirements.
State tax treatment of rollovers
Arizona follows federal tax-free treatment.
Illinois follows federal tax-free treatment except that, beginning in 2007, outbound rollovers are subject to the recapture of prior state tax deductions.
Does the sponsoring state exclude the value of an account for state financial aid purposes?
Yes
No
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
No
No
Is there a rewards program or outside scholarship program that works with this program?
Yes, Fidelity Rewards Visa Signature Card rebates 2% of purchases.
The Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
To whom are distributions made payable
To whomever the account owner specifies - the account owner, the beneficiary, a school, or anyone else.
Eligible educational institution, beneficiary, or account owner, as directed by the account owner.
Policy regarding participant/owner changes
Accepts requests to transfer account ownership. However, the program may report an owner change as a nonqualified distribution subject to all applicable federal and state taxes and penalties.
Accepts requests to transfer account ownership.
Does participant have online password-protected access to account?
Yes
Yes
Can the complete enrollment process including funding be done online?
Yes
Yes
Telephone
1-800-544-1262
1-877-432-7444