DES MOINES, IA (10/02/2012)(readMedia)-- State Treasurer Michael L. Fitzgerald announced today that College Savings Iowa has reached $3 billion in assets. "Families are taking advantage of the benefits of saving with College Savings Iowa," Fitzgerald said. "We are thrilled the Plan has continued to grow at such an exciting pace. More and more families are aware that saving early for their children's higher education is of the utmost importance."
As a way to encourage families to continue saving early, College Savings Iowa is giving away a $5,290 College Savings Iowa account - its largest giveaway to date. For more information about the program and to enter the giveaway, please visit www.collegesavingsiowa.com any time before November 30, 2012.
College Savings Iowa, created in 1998, is a budget-friendly 529 plan that offers multiple investment choices, as well as significant federal and state tax benefits to help families grow their savings even more. An account can be started with as little as $25 and the assets can be used to pay for qualified higher education expenses at any eligible college, university, community college or accredited technical training school in the United States or abroad. Iowa state taxpayers can deduct up to $2,975 in contributions per beneficiary account from their 2012 adjusted gross income.*
*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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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. Vanguard Marketing Corporation, Distributor.
College Savings Iowa is an Iowa trust sponsored by the Iowa State Treasurer's Office. The Treasurer of the State of Iowa sponsors and is responsible for overseeing the administration of the College Savings Iowa 529 Plan. The Vanguard Group, Inc., serves as Investment Manager and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists the Treasurer with marketing and distributing the Plan. Upromise Investment Advisors, LLC, provides records administration services. The Plan's portfolios, although they invest in Vanguard mutual funds, are not mutual funds.
