DES MOINES, IA (03/05/2012)(readMedia)-- State Treasurer Michael Fitzgerald met with the family of a lucky Grinnell Kindergartner on Friday to present a $200 College Savings Iowa account plus a Paul Rhodes autographed football. Nolan Andersen, age six, was chosen to receive the award after his grandfather, Don, entered him for the giveaway on the College Savings Iowa's website.
"With college tuition rates rising faster than inflation, saving for college is not an easy task these days," Fitzgerald said. "As the saying goes, your best defense is a good offense. And what better offense is there than saving early? It is one of the most significant things a family can do to help make college a reality for their child. It can reduce a parent's need to borrow to cover educational expenses, which can help them - and their child - get through college with less debt."
College Savings Iowa offers a convenient, affordable, tax-advantaged way for families to start saving for their children's education. It takes just $25 to open a College Savings Iowa account, and anyone - parents, grandparents, friends and relatives - can invest on behalf of a child. Participants who are Iowa taxpayers can deduct contributions up to $2,975 per beneficiary account from their adjusted gross income in 2012 and there are no income or residency restrictions.*
Investors do not need to be a state resident and can withdraw their investment federally tax-free to pay for qualified higher education expenses including tuition, books, supplies and certain room and board costs at any eligible college, university, community college or technical training school in the United States or abroad. To learn more about College Savings Iowa, go to www.collegesavingsiowa.com or call 1-888-672-9116.
*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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