DES MOINES, Iowa, July 17 -- The Iowa Treasurer issued the following news:
State Treasurer Michael L. Fitzgerald met with the family of a Sioux City child yesterday to present a $5,290 College Savings Iowa account. Mia Cramer, age 5 months, was randomly chosen to receive the award after her grandmother, Barb, entered her for the giveaway as part of College Savings Iowa's Spring Giveaway. "This is the first grandparent to win one of our seasonal giveaways," Fitzgerald stated. "It demonstrates how families can work together to help a child accomplish their educational dreams."
"With college tuition rising faster than inflation, saving for college is not an easy task these days," added Fitzgerald. "Saving ahead of time is one of the most significant things a family can do to help make college a reality for their child. It can reduce a need to borrow to cover educational expenses, which can help families get through college with less debt."
College Savings Iowa offers a convenient, affordable, tax-advantaged way for families to start saving for their children's 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 $3,098 per beneficiary account from their adjusted gross income in 2014 and there are 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 collegesavingsiowa.com or call 1-888-672-9116. You can also like the plan on Facebook and follow it on Twitter (@Iowa529Plan) to keep up to date on other giveaway opportunities.
*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.
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