Treasurer Fitzgerald Helps Teachers Prepare for Kindergarten Round-Up

DES MOINES, IA (02/16/2010)(readMedia)-- State Treasurer Michael L. Fitzgerald is offering free pencils to Iowa Kindergarten teachers through the Prepare for the Basics program. He understands that Kindergarten Round-Up is an essential time for both children and parents alike, and that is why he is providing this service free of charge. "Schools have the right idea when it comes to preparing children to begin their formal education. Inviting families to the school before classes begin is a great way to ease the transition," Fitzgerald said. In addition to the pencil, this free program will provide information about College Savings Iowa, the state-sponsored 529 plan created to help families meet the increasing costs of higher education.

College Savings Iowa lets anyone – parents, grandparents, friends and relatives – invest for college. Iowa taxpayers can deduct up to $2,811 in contributions per beneficiary account from their adjusted gross income in 2010.* Investors do not need to be a state resident and can withdraw their investment tax-free to pay for qualified higher education expenses including tuition, books, supplies and room and board at any eligible college, university, community college or accredited technical training school in the United States or abroad.** For more information about College Savings Iowa, visit www.collegesavingsiowa.com or call 1-888-672-9116.

Elementary Principals interested in taking part in the Prepare for the Basics program are urged to register online by visiting www.treasurer.state.ia.us and clicking on the financial literacy tab. To ensure timely arrival, materials should be requested at least two weeks in advance, and will be delivered directly to the participating schools. Supplies are limited, so early registration is advised.

*Adjusted annually for inflation. 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.