DES MOINES — With college savings month coming to an end, State Treasurer Michael L. Fitzgerald wants to remind Iowans to take advantage of College Savings Iowa InFocus. The interactive learning experience introduces parents, grandparents and others to the benefits of saving for the higher education of a loved one.
“We want savers to learn how easy it can be to save for a loved one’s education,” Fitzgerald said. “By completing the 10-minute tutorial, families are automatically registered to win a $1,000 College Savings Iowa account.” Visit Iowa529InFocus.com to complete the tutorial and see official rules.
“As a way to help families jump-start their children’s future education expenses, 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,” said Fitzgerald. “Our tutorial offers families the opportunity to celebrate college savings month and potentially receive a boost to their college savings!” The newly established accounts must have a minimum $25 contribution and be opened within the first seven days of tutorial completion to be eligible for the $10 contribution.
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. Iowa taxpayers have the additional benefit of being able to deduct contributions up to $3,163 per beneficiary account from their 2015 Iowa adjusted gross income.*
Investors do not need to be a state resident and can withdraw their investment federally tax-free to pay for qualified higher education expenses, which includes 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.**
Visit Iowa529InFocus.com to complete the tutorial. To learn more about College Savings Iowa, please visit CollegeSavingsIowa.com or call 1-888-672-9116. For more information about future giveaways and events find College Savings Iowa on Facebook and Twitter (@Iowa529Plan).
*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.
**Earnings on nonqualified withdrawals may be subject to federal income tax and a 10-percent 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.