Families can register to win one of five $529 College Savings Iowa Accounts.
DES MOINES, IA (03/01/2012)(readMedia)-- State Treasurer Michael L. Fitzgerald is encouraging Iowans with young children to start thinking about saving for their children's future higher educational expenses. "As a way to raise awareness about the importance of saving for higher education we have teamed up with daycares across the state to get information into the hand of parents," Fitzgerald said. "Throughout the month of March, parents are able to register their children to win one of five $529 College Savings Iowa accounts. I would like to thank all of the daycares who volunteered to take time out of their busy days to pass this information on."
After their daycare is registered to participate, families can visit www.iowa529contest.com to enter their children in the contest. Once there, they should select the Daycare Giveaway and enter their information, including selecting their daycare from the dropdown menu. At the end of the giveaway, five children will be randomly selected from across the state to win.
College Savings Iowa is an affordable, tax-advantaged option for families who are saving for their children's higher education. It takes just $25 to open a College Savings Iowa account, and anyone - parents, grandparents, friends and relatives - can invest on behalf of a child. Participants who are Iowa taxpayers can deduct contributions up to $2,865 per beneficiary account from their adjusted gross income in 2011 and there no income or residency restrictions.*
Investors do not need to be a state resident and can withdraw their investment federally 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 technical training school in the United States or abroad. To learn more about College Savings Iowa, go to www.my529iowaplan.com or call 1-888-332-7545.
*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.
###
