State Treasurer Fitzgerald Announces May 29 is "529 College Savings Day"

DES MOINES, IA (05/24/2010)(readMedia)-- State Treasurer Michael L. Fitzgerald is asking Iowans to observe "College Savings Day" on May 29 by exploring the benefits of using a 529 plan, such as College Savings Iowa, to save for future higher education expenses. "We want parents to know it's never too early to start planning for their child's future education," said Fitzgerald. "As a way to raise awareness about 529 plans, during the month of May, families have the chance to win a free $529 College Savings Iowa account and get a jump start on saving for their child's future education." For more information and to enter the giveaway, please visit www.collegesavingsiowa.com.

529 College Savings Day: What's the Big Deal?

"529 College Savings Day" helps bring attention to the fact that saving for college is one of the most significant things families can do for the child in their lives. Those who begin early and save little by little can make their college savings can add up over time. Because saving for future educational expenses is important, everyone is encouraged to open a College Savings Iowa for a special child in their lives.

College Savings Iowa Gives Iowans a Plan

College Savings Iowa offers affordability and tax-advantages to families who are saving for their children's college education. It takes just $25 to open a College Savings Iowa account, and investors can contribute as little as $25 when adding to the account. Participants who are Iowa taxpayers can deduct contributions up to $2,811 per beneficiary from their adjusted gross income in 2010.*

Anyone can invest in College Savings Iowa on behalf of a child. 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 accredited technical training school in the United States or abroad.** To learn more about College Savings Iowa, please visit www.collegesavingsiowa.com or call 888-672-9116.

*If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.

** 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.