News from State of Iowa Treasurer's Office

For more information contact: Michael Fitzgerald 515-281-5368 / Karen Austin 515-281-7677

Treasurer Fitzgerald to Fair-goers: Register to Win College Savings Iowa Account

DES MOINES, IA (07/29/2008; 1518)(readMedia)-- State Treasurer Michael L. Fitzgerald urges fair-goers to add a visit to the College Savings Iowa booth, located inside the Varied Industries Building, to their list of State Fair must-do's. "Make sure you pencil us in somewhere between sliding down the big slide and catching a peek at the butter cow," states Fitzgerald. "In celebration of ten years in operation, we will be giving away a $1,000 College Savings Iowa account to some lucky boy or girl. Just remember, your child can't win if you don't take the time to register." Representatives from the treasurer's office will be on hand throughout the Fair to answer questions about College Savings Iowa.

Treasurer Fitzgerald encourages parents to put time on their side by starting to save for college as soon as possible. "Consider opening a College Savings Iowa account today and watch your investments grow right along with your child," says Fitzgerald. "Those who begin saving early will be in a better position to meet the challenge of paying for college without going into debt. Even a small amount of money, invested regularly over time, can grow into a substantial sum," he added.

It doesn't take much time or money to start saving with College Savings Iowa. "We know that today's families are busy and sometimes strapped for cash. This plan is easy to get started in and budget-friendly," offers Fitzgerald. Investors can enroll online in about ten minutes with as little as $25. They can put future contributions on autopilot by participating in employer-sponsored payroll deduction or through automatic withdrawals from a checking or savings account.

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 the first $2,685* they contribute to each account from their 2008 state taxable income and there are no income or residency restrictions. Earnings grow free of state and federal taxes. 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. **

Saving for a child's education is always a smart investment, and College Savings Iowa is here to help. For more information about College Savings Iowa and all that it has to offer, visit www.collegesavingsiowa.com or call 888-672-9116.

*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.