During the month of May, State Treasurer Michael Fitzgerald is celebrating 529 Day by giving away five $529 College Savings Iowa contributions. “529 Day is another chance for me to encourage Iowa families to look into saving for higher education with College Savings Iowa,” said Fitzgerald. “It takes a lot of teamwork to help a child achieve their dreams, and saving with a 529 plan is something easy the whole family can do.”
“This 529 Day, I’m hoping to spread some cheer to five different Iowa families by giving away five $529 College Savings Iowa contributions,” Fitzgerald added. “These kinds of giveaways allow me to help some families get started while getting important information about 529 plans in front of more Iowans.” The giveaway is open May 1 through May 31, and any Iowa family with a child or grandchild under the age of 18 is eligible to register. Those interested can visit Iowa529Contest.com to watch a short video, read the official rules and sign up for the giveaway before the deadline.
More than $3 billion has been withdrawn for qualified expenses using College Savings Iowa funds. Investors can withdraw their investments federally tax-free to pay for qualified higher education expenses including tuition, books, computers, 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.*
Treasurer Fitzgerald launched College Savings Iowa in 1998 as a way to offer 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. Iowa taxpayers have the additional benefit of being able to deduct contributions up to $3,439 per beneficiary account from their 2020 Iowa income taxes.**
Those interested in learning more about College Savings Iowa this 529 Day or wanting to help spread awareness about the program can visit CollegeSavingsIowa.com or call (888) 672-9116. To keep up-to-date with the plan for information and future giveaways, follow College Savings Iowa on Facebook and Twitter.
*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.
**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.