DES MOINES, Iowa – State Treasurer Michael L. Fitzgerald met with a State Center family today to present a $1,000 College Savings Iowa account. Leon Pfantz, age two, was randomly chosen to receive the award after his father, Ryan, completed the College Savings Iowa InFocus 529 tutorial last fall. “The Pfantz family is the first to receive our new $1,000 InFocus giveaway,” Fitzgerald stated. “My office launched our 529 tutorial, College Savings Iowa InFocus, last fall. This 10 minute interactive learning experience introduces parents, grandparents and others to the benefits of using a 529 plan to save for future educational expenses.”
By completing the online tutorial, families are automatically registered to win a $1,000 College Savings Iowa account in a second drawing to be held this summer. “As a way to encourage families to take the first step towards saving, College Savings Iowa is also offering an additional $10 contribution to the first 500 people who complete the tutorial and open a College Savings Iowa account,” Fitzgerald added. The newly established accounts must have a minimum $25 contribution and be opened within the first calendar month of tutorial completion to be eligible for the $10 contribution. Visit Iowa529InFocus.com between now and May 31 to complete the tutorial and see official rules.
College Savings Iowa is designed to provide families a tax-advantaged way to save money for their children’s higher education. It only takes $25 to open an account, and anyone – parents, grandparents, friends and relatives – can invest in College Savings Iowa on behalf of a child. Participants who are Iowa taxpayers can deduct contributions up to $3,188 per beneficiary from their 2016 adjusted gross income, and there are no income or residency restrictions.* Earnings grow tax free and investors can withdraw their investment federally and Iowa state 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.**
Saving for a child’s education is always a smart investment, and College Savings Iowa is there to help. To learn more about College Savings Iowa or to open an account, please visit CollegeSavingsIowa.com or call 1-888-672-9116.
Note: Effective for tax years beginning on or after January 1, 2015, Iowa taxpayers may now elect to treat contributions to their College Savings Iowa account made up through the deadline (excluding extensions) for filing an individual Iowa state income tax return (generally April 30).
*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. The availability of tax or other benefits may be contingent on meeting other requirements.
**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 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 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.