State Treasurer Michael L. Fitzgerald awarded a $529 College Savings Iowa account to a Carroll child on Wednesday as part of the program’s Daycare Giveaway. Riley Brincks, who attends Peace of Mind Daycare, was entered in the giveaway by her parents, Cheryl and Jody, who learned of the program from the childcare provider.
“Riley may not be ready to pick a college yet, but she’s already got a jump start on her college savings, and it will hopefully continue to grow right alongside her,” said Fitzgerald. “As a way to raise awareness about the importance of saving for higher education, we teamed up with daycares across the state to get information about College Savings Iowa into the hands of parents.” Throughout the month of March, parents were able to register their children to win one of five $529 College Savings Iowa accounts as part of the Daycare Giveaway.
College Savings Iowa is an affordable, tax-advantaged option for families who are saving for their children’s higher education. It takes just $25 to open a College Savings Iowa account, and anyone – parents, grandparents, friends and relatives – can invest on behalf of a child. Participants who are Iowa taxpayers can deduct contributions up to $2,975 per beneficiary account from their adjusted gross income in 2012 and there are no income or residency restrictions.*
Investors do not need to be a state resident and 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 technical training school in the United States or abroad. To learn more about College Savings Iowa, go to www.collegesavingsiowa.com or call 1-888-672-9116. You can also like College Savings Iowa on Facebook by going to www.facebook.com/CollegeSavingsIowa529Plan to keep up to date on other giveaway opportunities.
*Adjusted annually for inflation if withdrawals are not qualified, the deductions must be added back to Iowa taxable income. 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 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.