Join families across the country in celebrating 529 College Savings Day by exploring the benefits of using College Savings Iowa to save for a loved one’s future higher education expenses. May 29 was declared 529 College Savings Day in order to highlight the fact that saving for college is one of the most significant things families can do for their children.
It is never too early to start planning for your children’s future education, and those who begin putting away money early can, over time, make their college savings add up. As a way to raise awareness about 529 plans, College Savings Iowa is encouraging families to start saving early by giving one lucky family a chance to gain a jump start on their savings by winning a $5,290 College Savings Iowa account. For more information and to register for the giveaway visit CollegeSavingsIowa.com.
Participants can open a College Savings Iowa account with as little as $25 and save for anyone: children, grandchildren, friends or even themselves. Saving with College Savings Iowa also offers many tax-advantages. State of Iowa taxpayers are able to deduct contributions up to $3,163 per account from their 2015 Iowa adjustable income.* Additionally, when it comes time to use the funds, they may be withdrawn free from both federal and Iowa state income taxes when used to pay for qualified higher-education expenses.**
*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.
**If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation.
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.