By Matthew Holloway |

Arizona’s state-sponsored education savings program has reached a record $3.2 billion in managed assets, with the Arizona Treasurer’s Office reporting a 96.9 percent increase since Treasurer Kimberly Yee assumed administration of the plan in October 2020.

The Arizona Treasurer’s Office announced Tuesday that the AZ529 Education Savings Plan has also added 74,995 new accounts during the 69 months it has operated under Yee’s administration.

The latest figures represent continued growth from the beginning of the year. In January, the Treasurer’s Office reported that the plan held $2.87 billion in assets and had added 63,586 accounts since its transfer to the office. The new figures represent approximately $330 million in additional assets and another 11,409 accounts compared with those totals.

AZ529 came under the administration of the Treasurer’s Office on Oct. 1, 2020, after then-Gov. Doug Ducey signed SB 1528, transferring administration of the program from the Arizona Commission for Postsecondary Education to the State Treasurer and establishing the State Board of Investment as trustee. The plan itself was created by the Legislature in 1997 and launched in 1999.

Two years after the transfer, the Treasurer’s Office reported that the plan had added 22,326 accounts and held approximately $1.67 billion in assets. At that time, assets had increased 3.1 percent since the Treasury took control of the program.

By January 2026, assets had risen 76.7 percent from the October 2020 level to $2.87 billion. The Treasurer’s Office said at the time that 63,586 new accounts had been opened during the first 63 months of Treasury administration.

The program allows parents, grandparents, and other account owners to invest money for a beneficiary’s education through tax-advantaged accounts. Funds may be used for qualified expenses including college and university costs, community college, vocational and trade programs, registered apprenticeships, and certain other educational expenses.

Arizona taxpayers may deduct contributions made to any qualifying state 529 plan from state taxable income, up to $2,000 per beneficiary for single filers and heads of household and $4,000 per beneficiary for married couples filing jointly. Earnings grow tax-free, while qualified withdrawals are exempt from federal and Arizona income taxes.

Families can begin saving with as little as $15 per month, depending on the plan provider. The program currently offers a direct-sold plan through Fidelity Investments and an advisor-sold plan through Goldman Sachs.

Federal changes have also expanded the ways some unused 529 funds can be handled. AZ529 beneficiaries may roll qualifying unused funds into the beneficiary’s Roth IRA, subject to federal requirements and a $35,000 lifetime limit.

The plan has received national recognition during its growth. In January, the Treasurer’s Office announced that Forbes named AZ529 one of six plans selected from 70 evaluated for its 2026 list. The program has also received a Silver rating from Morningstar for 2023, 2024, and 2025.

Yee, who is running for Arizona Superintendent of Public Instruction and serving her final year as state treasurer, has made expansion of the 529 program and financial-literacy outreach part of her office’s priorities. In her 2025 accomplishments report, the Treasurer’s Office said its outreach included communities across Arizona’s 15 counties, along with Spanish and Navajo-language materials promoting the education savings program.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.