News from State of Iowa Treasurer's Office

For more information contact: Karen Austin, 515-281-7677

Iowa City Baby to Receive College Savings Iowa BABY 529 Giveaway Award

DES MOINES, IA (12/02/2008)(readMedia)--

State Treasurer Michael Fitzgerald announced today that a Iowa City baby has been chosen to receive a $1,000 College Savings Iowa account, courtesy of the College Savings Iowa Baby 529 Giveaway. Baby William, born at University of Iowa Hospitals, is the child of Amber Baybayan and Jeffrey Nesler.

"Little William has quite a bit of growing to do before going off to college, and the money in this account will grow right along-side him," stated Fitzgerald, plan administrator. "We encourage families to put time on their side and start saving for college as soon as possible."

The College Savings Iowa BABY 529 Giveaway awards one college savings account each month to a randomly selected baby. All babies born in participating Iowa hospitals are eligible to win if they are registered.

"This is a wonderful way for our office to work in conjunction with Iowa Hospitals," stated Fitzgerald. Michael Artman, MD, Physician-in-Chief, University of Iowa Children's Hospital and Jennifer Niebyl, MD, Professor and Head, Department of Obstetrics and Gynecology also participated in the event. Coralville Hy-Vee Assistant Store Director Josh Grimes was on-hand with flowers, refreshments and other gifts for the baby. Sixty Iowa hospitals are currently participating in the College Savings Iowa BABY 529 Giveaway program.

"We're pleased to have so many Iowa hospitals join our effort to increase awareness about the benefits of saving for college," stated Fitzgerald. "We know new parents are busy, but it doesn't take much time or money to start saving with College Savings Iowa. They can open an account in about ten minutes with just $25."

College Savings Iowa is a state-sponsored 529 plan designed to give families a tax-advantaged way to save money for college. Investors can choose from thirteen Vanguard investment options, including four age-based investment tracks. Anyone - parents, grandparents, friends and relatives - can invest in College Savings Iowa on behalf of a child. Iowa taxpayers can deduct a portion of what they contribute to each account from their state taxable income and there are no income or residency restrictions.

Withdrawals used to pay for qualified higher education expenses including tuition, books, supplies, and room and board are free of state and federal taxes. Funds can be used at any accredited college, university, community college or technical training school in the United States or abroad. ** For more information on College Savings Iowa, call 1-888-672-9116 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 and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

About College Savings Iowa

Investment objectives, risks, charges, expenses and other important information are included in the Program Description; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter. If you are not an Iowa taxpayer, consider before investing whether your or the beneficiary's home state offers a 529 plan that provides its taxpayers with state tax and other benefits not available through this plan.

The Treasurer of the State of Iowa sponsors and is responsible for overseeing the administration of the College Savings Iowa 529 Plan. The Vanguard Group, Inc. serves as Investment Manager, and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists the Treasurer with marketing and distributing the Plan. Upromise Investment Advisors provides records administration services. College Savings Iowa is an Iowa trust sponsored by the Iowa State treasurer's office. The plan's portfolios, although they invest in Vanguard mutual funds,

are not mutual funds. Units of the portfolios are municipal securities and the value of units will vary with market conditions. 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.

About The Vanguard Group

Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world's largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages nearly $1.3 trillion in U.S. mutual fund assets, including more than $390 billion in employer-sponsored retirement plans. Vanguard offers more than 150 funds to U.S. investors and more than 50 additional funds in non-U.S. markets.

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Pictured in photo:

Left to right in photo: Treasurer Michael L. Fitzgerald, Amber Baybayan, Jeffrey Nesler and baby William, Dr. Jennifer Niebyl, Professor and Head, Department of Obstetrics and Gynecology, Dr. Michael Artman, Physician-in-Chief, University of Iowa Children's Hospital, Josh Grimes, Assistant Store Director, Coralridge Hy-Vee.

Attachments

Event photo.