Treasurer Fitzgerald Encourages Families to Plan for Higher Education
Des Moines, Iowa – State Treasurer Michael Fitzgerald is celebrating Higher Education Day, recognized annually on June 6, by stressing the importance of a post-secondary education and the need to save for it. “It pays to pursue a degree after high school,” said Fitzgerald. “Statistics show higher education – whether it be college, university, trade school or vocational programs – lead to higher earnings. Education is crucial, and with tuition prices continuing to rise, saving for the anticipated expenses is also critical.”
Treasurer Fitzgerald has the perfect tool to help families save for higher education: College Savings Iowa. The 529 plan, administered by Fitzgerald, provides loved ones a tax-advantaged way to invest in their children’s or grandchildren’s future. Money invested in a College Savings Iowa account can be used to pay for tuition, room and board, computers, textbooks and more at any eligible education institution in the U.S. or abroad.* Iowa taxpayers saving with the Plan have the added bonus of deducting up to $3,522 from their 2022 state income taxes per beneficiary account.**
“Higher Education Day is observed each year to help students prepare for their post-secondary journey both scholastically and financially,” continued Fitzgerald. “While scholarships, grants and financial aid are all useful in lowering the total cost of education, saving ahead of time is key in reducing the amount of student loan debt your child may carry.”
*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.