Des Moines, Iowa – State Treasurer Michael L. Fitzgerald awarded a $1,000 College Savings Iowa account contribution to the Bell family of Letts as part of the 2021 Iowa State Fair Giveaway. “By giving this boost to Hudson’s future education, we’re showing him we believe in his dreams,” said Fitzgerald. “The best part is, with a College Savings Iowa account, you can do the same for a child in your life! All it takes is an initial $25 and 10 minutes to start financially supporting their career aspirations.”
College Savings Iowa is a 529 plan that allows anyone to invest in education expenses on behalf of a child. “With tuition rising faster than inflation, saving ahead of time is one of the most significant things a family can do,” continued Fitzgerald. “Help your student get through higher education with less debt by saving now to reduce the need to borrow later.”
College Savings Iowa participants can withdraw their investments tax-free to pay for qualified expenses including tuition, room, board, books, supplies, fees and more.* Beneficiaries can attend any eligible institution in the United States or abroad, including colleges, universities, trade schools and apprenticeship programs.
The plan also offers a state tax deduction if an Iowa taxpayer is a College Savings Iowa participant. In 2021, eligible participants can deduct up to $3,474 in contributions per beneficiary account from their state taxable income.** “It’s a win-win,” added Fitzgerald. “You can save for education while you save on taxes!”
For more information on College Savings Iowa’s tax benefits, investment options and other plan highlights, visit CollegeSavingsIowa.com or call (888) 672-9116. Connect with the plan on Facebook and Twitter to stay up to date on current events, plan updates and future giveaways.
*Earnings on 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 or other benefits may be contingent on meeting other requirements.
**Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.