Contributions to College Savings Iowa accounts must be made by December 31, 2010
DES MOINES, IA (12/23/2010)(readMedia)-- Once again, the year has flown by, and it's already time to start looking ahead to 2011. Before the big ball drops on New Year's Eve, State Treasurer Michael L. Fitzgerald has an important reminder about College Savings Iowa. "The new year is upon us, but before you start celebrating, don't forget to make your final contributions to your College Savings Iowa accounts," Fitzgerald said. "If you're still looking for the perfect gift for a child or grandchild, don't miss this opportunity to give them a gift that will last a lifetime."
Contributions to College Savings Iowa must be made by the end of the year to qualify for 2010 state tax deductions. Account holders can deduct up to $2,811 for each open account and can contribute online at www.collegesavingsiowa.com.* All other contributions must be submitted by December 31, 2010. Contributions sent by mail must postmark checks by December 31, 2010.
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.
