State Treasurer Michael L. Fitzgerald wants to encourage online shoppers to give the gift of college savings this Cyber Monday. “In as little as 10 minutes you can give one of the most meaningful gifts a child may receive this holiday season – a College Savings Iowa account,” Fitzgerald said. “In addition to making a great gift, College Savings Iowa offers tax benefits to the participant as well.”
Iowa taxpayers can deduct contributions up to $2,975 per beneficiary from their 2012 adjusted gross income, and there are no income or residency restrictions.* To take advantage of this great tax-savings opportunity, investors can contribute online at collegesavingsiowa.com. All other contributions must be submitted by December 31, 2012. If the contribution is being mailed, checks must be postmarked by December 31, 2012.
With an initial investment of only $25 to open an account, anyone – parents, grandparents, friends and relatives – can invest in College Savings Iowa on behalf of a child. Investors can withdraw their investment federally tax-free to pay for qualified higher education expenses including tuition, books, supplies and certain room and board costs at any eligible college, university, community college or accredited technical training school in the United States or abroad.** To learn more about College Savings Iowa, please visit collegesavingsiowa.com or call 1-888-672-9116.
* 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.
Investment returns are not guaranteed and you could lose money by investing in the plan. Participants assume all investment risks as well as the responsibility for any federal and state tax consequences. If you are not an Iowa taxpayer, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.
For more information about the College Savings Iowa 529 Plan, call 1-888-672-9116, or visit www.collegesavingsiowa.com to obtain a Program Description. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor.
College Savings Iowa is an Iowa trust sponsored by the Iowa State Treasurer’s Office. The Treasurer of the State of Iowa sponsors and is responsible for overseeing the administration of the College Savings Iowa 529 Plan. The Vanguard Group, Inc., serves as Investment Manager and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists the Treasurer with marketing and distributing the Plan. Upromise Investment Advisors, LLC, provides records administration services. The Plan’s portfolios, although they invest in Vanguard mutual funds, are not mutual funds.