And you can use the proceeds at any eligible college, university, proprietary or vocational school in America. Earnings grow tax-free while you control the assets. When the time comes to use the funds for college, the earnings are taxed at the child's generally lower rate. Contributions are invested in CollegeSure CDs, certificates of deposit indexed to college costs and guaranteed to meet future tuition, fees, room and board. Favorable Financial Aid Treatment.
Parents can retain control of the assets to obtain favorable financial aid treatment.
There are also special state tax benefits for Montana residents. Arizona Family College Savings Program College Savings Bank has been selected as a program manager for the Arizona Family College Savings Program a section 529 plan that offers federal tax benefits to all U.S. residents in addition to special state tax benefits for Arizona residents. All rights reserved. Important legal information.