Treasurer Fitzgerald: Open a College Savings Iowa Account, Take Advantage of Tax Deduction

DES MOINES, IA (12/10/2009)(readMedia)-- State Treasurer Michael L. Fitzgerald wants Iowans to know if they are still searching for the perfect holiday gift for a special child in their life they have until December 31st to open a College Savings Iowa account and take advantage of the tax incentives for 2009. "Not only will opening a College Savings Iowa account provide a child with a gift that will last a lifetime, but you will receive immediate tax benefits as well. What could be a better combination?" stated Fitzgerald. "Time is running out to make contributions for this year so I encourage you to sign up before it's too late."

Iowa taxpayers contributing to College Savings Iowa can deduct up to $2,800 per account from their state taxable income in 2009.* To take advantage of this great tax-savings opportunity, investors can contribute online at www.collegesavingsiowa.com. All other contributions must be submitted by December 31, 2009. If the contribution is being mailed, checks must be postmarked by December 31, 2009.

College Savings Iowa lets anyone parents, grandparents, friends and relatives invest for college on behalf of a child. 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, call 888-672-9116 or visit www.collegesavingsiowa.com.

*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.