Spring into Saving with College Savings Iowa
Des Moines, Iowa – State Treasurer Michael L. Fitzgerald wants Iowans to spring into saving with College Savings Iowa. “During the season of new beginnings, I encourage families who have not started a dedicated education savings for their children to use spring time as a push to do so,” said Fitzgerald. “If you don’t know where to begin, or want something easy and affordable, look no further than College Savings Iowa.”
Administered by Fitzgerald, College Savings Iowa helps families and friends save for future education expenses such as tuition, room and board, textbooks and supplies.* Anyone can open an account – not just parents – to save for the children in their life. With various methods of contributing and professionally managed investments, the Plan is simple and easy to use. Participants can also enjoy tax benefits when saving with the 529 plan, including a $3,522 Iowa state tax deduction per beneficiary account in 2022.**
“I would also like to remind current account owners to add College Savings Iowa to their spring-cleaning checklist,” continued Fitzgerald. “Spring is a good time to start or adjust your automatic contributions through your financial institution or your employer. While you are reviewing your account, make sure your contact information is up to date and you have dedicated a successor participant.”
*Earnings on 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.
**Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.