State Treasurer Michael Fitzgerald is encouraging Iowans to add College Savings Iowa to their spring cleaning checklist. As the weather starts to warm up, families around the state will begin the process of decluttering their homes. “While you’re cleaning up around the house, I would encourage you to take the time to review your education goals and consider the College Savings Iowa 529 plan as a savings tool,” said Fitzgerald. “While you may not normally consider your financial accounts when spring cleaning, taking the time to explore the benefits of College Savings Iowa could help your family prepare for a bright future in the years to come.”
Not only is College Savings Iowa a great resource for getting your savings on track for future education expenses, but the plan keeps getting better. Fitzgerald recently announced a price reduction and updated tax deduction amount for College Savings Iowa participants. The price reduction is the eighth price reduction in the last 15 years and brings the annual asset-based fees of College Savings Iowa’s portfolios down from 0.20% to 0.19%. Plus, if an Iowa taxpayer is a College Savings Iowa account owner, they can deduct the first $3,474 they contribute per beneficiary account from their state taxable income in 2021.*
“If you’re already saving with a College Savings Iowa account, spring is the perfect time to review your account assets and information,” Fitzgerald said. “Make sure you’re still on track to reach your annual savings goals and your contact information is up-to-date so the plan can stay in touch. You can also opt for online delivery of your account information to reduce the amount of paperwork as you declutter.”
College Savings Iowa is a 529 plan that lets parents, grandparents, friends and relatives invest for education expenses on behalf of a future scholar. With age-based savings tracks, and the ability to automatically contribute on a recurring basis, investors at all stages of their savings journey can find the right strategy and feel confident their preparation is working for them. The funds and earnings from a College Savings Iowa account can be used to pay for qualified expenses like tuition, room, board, books, supplies and more at any accredited program around the country.** The education institution does not have to be in Iowa and includes colleges, universities, community colleges, trade schools, apprenticeship programs and more.
College Savings Iowa holds over $5.9 billion in assets with more than 257,000 active accounts and an average account size of $21,722. More than $3.3 billion has already been used to help students achieve their education dreams and pay for qualified expenses.
For more information about College Savings Iowa, call (888) 672-9116 or visit CollegeSavingsIowa.com. Connect with the plan on Facebook and Twitter to stay up to date on current events and plan updates.
*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.
**Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.