State Treasurer of Iowa

College Savings Iowa Newsletter: 2014 3rd Quarter Newsletter

Celebrate 16 years with us!

It’s hard to believe that we’ve been helping Iowa families save for their children’s higher education expenses for 16 years now. Join us in celebrating by telling your friends and family about all of the benefits of saving for the children in their lives through College Savings Iowa. Share the benefits of the plan, and help us continue to make the dream of attending college a reality for the next generation.


Save on taxes: Contribute before the year-end deadline

Don’t forget to maximize your College Savings Iowa contributions to take advantage of annual state tax deductions. You can wrap up the year by giving a child in your life the chance of a better future and by receiving tax benefits for yourself. 

Iowa taxpayers can deduct up to $3,098 in contributions per beneficiary account from their state taxable income.* This means that if you and your spouse each contribute to separate accounts on behalf of two children, together you can deduct a total of up to $12,392 (4 x $3,098) in 2014.
To take advantage of the tax deduction for 2014, contributions to your College Savings Iowa account must be postmarked by December 31, 2014. If you contribute via electronic bank transfer, you must complete your request by 11:59 p.m., Central time, on December 31, 2014.
*The earnings portion of nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax and other benefits may be contingent on meeting other requirements.

Iowa State Fair: The results are in

Every year we ask children visiting our booth at the fair what they want to be when they grow up and if they’ll need to go to college to achieve their goals. We’re always amazed by what they have to say.
According to the survey results, 85% of the children believe getting a college education is necessary to achieve their dreams and career aspirations. And the majority of kids think a college education will cost them around $100,000. This just reinforces how important it is for families to start planning and saving early to help children achieve those dreams.
The top answer for “What do you want to be when you grow up?” was athlete. Other popular answers included veterinarian and scientist.

Debunking 529 plan myths

Fiction: It costs a lot to open and maintain an account.

Fact: You can open an account with a minimum of $25. Each additional contribution can be as little as $25. You can contribute regularly or whenever it’s convenient.* The plan also doesn’t charge enrollment, annual, withdrawal, or advisor fees or sales commissions. Your only expense is a low annual asset-based fee of 0.28%. That means for every $1,000 you invest, you’ll pay $2.80 in fees per year.

*A plan of regular investment can't assure a profit or protect against a loss in a declining market.

Get help saving for college with Ugift

The holidays are approaching and family members are always looking for gift ideas. Help them out by telling them about a gift that has lasting impact—a contribution to your child’s college savings account.

Ugift is a free online service you can use to request contributions toward 529 plan accounts. Account owners can use it in two ways:

  1. Get a Ugift code that friends and family can use to make contributions anytime at
  2. Provide family and friends’ e-mail addresses, and Ugift will send them invitations to contribute for a specific occasion such as a birthday or holiday.

Or, if you don’t have e-mail addresses, you can print out the coded gift coupons to mail or hand out.

Your efforts can make a big difference in your child’s future. And your family can feel proud that they helped make college a reality for your child.

To learn more about Ugift, go to and click the Ugift logo.

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