DES MOINES, IA (01/05/2012)(readMedia)-- State Treasurer Michael L. Fitzgerald announced today that the deduction amount for College Savings Iowa has once again been raised. "Iowa taxpayers can now deduct the first $2,975 they contribute to each College Savings Iowa beneficiary account from their state taxable income," said Fitzgerald. "This means that a married couple with two children will be able to deduct up to $11,900 in contributions on their 2012 state taxes."*
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.**
One of the best features of College Savings Iowa is how easy it is to get started. "All you need is $25 and ten minutes of your time to start saving," said Fitzgerald. "I encourage all families to save whatever they can today to help offset what has to be borrowed in the future." 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.
** The earnings portion of nonqualified 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.
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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. If you are not an Iowa taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
For more information about the College Savings Iowa 529 Plan, call 888-672-9116 or visit www.collegesavingsiowa.com to obtain a Program Description. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing.
