EDUCATION PLANS
         

  ANNUITIES         TAX QUALIFIED 529 PLANS          LIFE INSURANCE
 

ANNUITIES:
 
Tax-Qualified Plans, premiums are tax deductible and the earnings accumulates tax-free throughout the years. You must pay regular income taxes on all with-drawls, at the time of the with-drawl.
 
Non-Qualified Plans, premiums are Not deductible but the earnings accumulates tax-free throughout the years. You must pay regular income taxes on earnings with-drawls only, at the time of the with-drawl.

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 (With-drawls 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 taxes is paid on the earnings only of the plan at the time of with-drawls.  There are no maximum amounts that can be paid into the life insurance plan.