DES MOINES, IA (12/09/2010)(readMedia)-- State Treasurer Michael L. Fitzgerald wants shoppers to give themselves a present this holiday season while giving their children or grandchildren one of the best gifts of all - an education. He's talking about College Savings Iowa, a convenient and tax-advantaged way to help children save for college. "Opening a College Savings Iowa account has two-fold benefits," said Fitzgerald. "Not only are you helping a child prepare for his/her future education, you can take advantage of the tax benefits as well. It's the perfect gift!"
Iowa taxpayers contributing to College Savings Iowa can deduct up to $2,811 per account from their state taxable income in 2010.* To take advantage of this great tax-savings opportunity, investors can contribute online at www.collegesavingsiowa.com. All other contributions must be submitted by December 31, 2010. If the contribution is being mailed, checks must be postmarked 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 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.** 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.
