Schools across the state are invited to participate in Prepare for the Basics give-away.
DES MOINES, IA (03/07/2012)(readMedia)-- State Treasurer Michael L. Fitzgerald is offering free pencils to schools across Iowa for use in Kindergarten Round-Up through the Prepare for the Basics program. "Our schools know inviting families to check out their school six months before the school year begins will help kindergarteners prepare for their big transition," Fitzgerald said. "We offer the pencils as a small gesture of support for our schools." In addition to the pencil, this free program will provide information about College Savings Iowa, the state-sponsored 529 plan created to help Iowa families meet the increasing costs of higher education.
College Savings Iowa lets anyone - parents, grandparents, friends and relatives - invest for college. Iowa taxpayers can deduct up to $2,975 in contributions per beneficiary account from their adjusted gross income in 2012.* 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, visit www.collegesavingsiowa.com or call 1-888-672-9116.
Elementary Principals interested in taking part in the Prepare for the Basics program are urged to register online by visiting www.treasurer.state.ia.us. They can register by clicking on the Education tab and then going to the Prepare for the Basics Campaign. To guarantee timely arrival, materials should be requested at least two weeks in advance. They will be delivered directly to the participating schools. Supplies are limited, so early registration is advised.
*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.
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.
