State Treasurer Michael Fitzgerald wants to remind Iowans it is their last chance to celebrate 529 Day by registering to win a $1,000 College Savings Iowa account for a child in their life. “I encourage everyone to register for the giveaway and explore the benefits of using a 529 plan, such as College Savings Iowa, to save for their loved ones’ future higher education expenses,” Fitzgerald said. “By starting early, saving a little at a time and making smart investment choices, families can make their savings work for them.” For more information and to register for the giveaway, please visit www.my529iowaplan.com before May 31.
May 29, 529 Day, helps bring attention to the fact that saving for college is one of the most significant things families can do for the children in their lives. Those who begin putting away money early and save little by little can, over time, make their college savings add up to a significant amount. Because saving for future educational expenses is so important, Iowa families are encouraged to open a College Savings Iowa account for a special child in their life.
College Savings Iowa offers 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 $2,975 per beneficiary from their 2012 adjusted gross income, and there are no income or residency restrictions.* 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 www.myiowa529plan.com or call1-888-672-9116.
*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. The earnings portion of 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.