DES MOINES, IA (07/27/2010)(readMedia)-- State Treasurer Michael Fitzgerald reminds State Fair visitors to stop by College Savings Iowa booth and register for a chance to win a $1,000 College Savings Iowa account for their child or grandchild. "Some lucky boy or girl will go home from the fair this year with more than just fond memories -- free money for college," says Fitzgerald. "Make sure you stop by and see us while you're in the Varied Industries Building."
Treasurer Fitzgerald encourages families to start saving for college as soon as possible. "Saving ahead of time may reduce a parent's need to borrow to cover educational expenses, which can help them-and their child-get through college with less debt," says Fitzgerald. "Even a small amount of money, invested regularly over time, can grow into a substantial sum," he added.
Anyone - parents, grandparents, friends and relatives - can invest in College Savings Iowa on behalf of a child. This state-sponsored investment plan is 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. Contributions and earnings grow free of federal and Iowa state income taxes while invested and remain tax-free when used to pay for qualified higher education expenses at any eligible college, university, community college or technical training school in the United States or abroad. * Iowa sweetens the deal for investors by allowing state taxpayers to deduct up to $2,811 in contributions per beneficiary account from their adjusted gross income in 2010. **
It doesn't take much time or money to start saving with College Savings Iowa. Investors can enroll online in about ten minutes with as little as $25. Online account services and multiple contribution methods, including electronic investment options that allow for the transfer of money directly from an existing checking or savings account, make it easy for busy families to save regularly and manage their accounts.
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, visit www.collegesavingsiowa.com or call 1-888-672-9116.
* 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.
**Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.
