Contributions to College Savings Iowa accounts must be made by December 31, 2013
DES MOINES, IA (12/17/2013)(readMedia)-- State Treasurer Michael L. Fitzgerald has an important reminder about College Savings Iowa before the big ball drops on New Year's Eve. "Don't forget to make your final contributions to your College Savings Iowa account," Fitzgerald said. "You can wrap up the year by helping a child in your life with their future plans and take advantage of the tax benefits for yourself."
Contributions to College Savings Iowa must be made by the end of the year to qualify for the 2013 Iowa state tax deduction. Account holders can deduct up to $3,045 for each open account and can contribute online at www.collegesavingsiowa.com.* Contributions sent by mail must postmark checks by December 31, 2013.
College Savings Iowa is designed to provide families a tax-advantaged way to save money for their children's higher education. It only takes $25 to open an account, and anyone - parents, grandparents, friends and relatives - can invest in College Savings Iowa on behalf of a child. Earnings grow tax free and investors can withdraw their investment federally and Iowa state tax-free to pay for qualified higher education expenses including tuition, books, supplies and certain room and board costs at any eligible college, university, community college or accredited technical training school in the United States or abroad.**
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* 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 the 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 1-888-332-7545, or visit www.my529iowaplan.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.
