Contributions to College Savings Iowa accounts must be made by December 31, 2011.
DES MOINES, IA (12/21/2011)(readMedia)-- Once again, the year has flown by, and it's already time to start looking ahead to 2012. However, State Treasurer Michael Fitzgerald has an important reminder about College Savings Iowa before the big ball drops on New Year's Eve. "Before you start celebrating, don't forget to make your final contributions to your College Savings Iowa account," Fitzgerald said. "To help ring in the New Year and remind Iowans about the importance of saving for college, College Savings Iowa is giving away a $529 College Savings Iowa account." For more information and to enter the giveaway, please visit www.collegesavingsiowa.com.
Contributions to College Savings Iowa must be made by the end of the year to qualify for 2011 state tax deductions. Account holders can deduct up to $2,865 for each open account and can contribute online at www.collegesavingsiowa.com.* Contributions sent by mail must postmark checks by December 31, 2011.
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 investments 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 Sates or abroad.** For more information about College Savings Iowa, call 888-672-9116 or visit 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.
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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.
