Contributions to College Savings Iowa accounts must be made by December 31, 2013.
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.**
Saving for a child’s education is always a smart investment, and College Savings Iowa is there to help. To learn more about College Savings Iowa or to open an account, please visit www.collegesavingsiowa.com or call 1-888-672-9116. Also Like College Savings Iowa on Facebook and Follow the Plan on Twitter (@Iowa529Plan) to stay up to date on all current news and giveaways.
* 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.