Iowa State Treasurer Michael L. Fitzgerald reminds Iowa residents that May 31 is the deadline to register for this year’s College Savings Iowa 529 Day Giveaway. “We’re counting down the days until a winner is drawn for each county, and it could be you,” said Fitzgerald. “Don’t miss out on this opportunity to start your child’s education savings with a $529 bonus.” Register here before the deadline for a chance to win..
May 29, which is recognized nationally as 529 Day, encourages families to learn about their state’s 529 plans to save for their children’s higher education. College Savings Iowa is one of Iowa’s 529 plans and offers several tax benefits to help families maximize their savings. Iowa taxpayers can deduct up to $3,522 per beneficiary account from their 2022 Iowa adjusted gross income, adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.
“Before you know it, it’ll be time to pay that tuition bill,” said Fitzgerald. “Get a head start by opening a College Savings Iowa account and registering for the 529 Day Giveaway today.” Besides tuition, families can use their College Savings Iowa account to pay for room and board, books, supplies, computers and more at any eligible education institution in the U.S. or abroad. 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.
Click here for more information on the program or call (888) 672-9116. Find College Savings Iowa on Facebook and Twitter to stay connected on upcoming events and giveaways.