DES MOINES, IA – State Treasurer Michael Fitzgerald and College Savings Iowa are celebrating “529 Day,” by hosting a $529 giveaway in each Iowa county. In addition, one grand prize winner will receive a $1,529 College Savings Iowa contribution that will be drawn from all entrants across the state. Fitzgerald says “529 Day helps spread awareness about the benefits of saving for future education expenses with a 529 plan. The 529 Day giveaway gives us the opportunity to reach Iowa families and spread the word about the College Savings Iowa 529 plan while giving 100 families a boost to their education savings.” Those interested in the giveaway can visit Iowa529Contest.com to read the official rules and register for their chance to win by May 31, 2021.

One of the major benefits of 529 plans is the tax incentives. While 529 Day is celebrated nationally on May 29, the tax advantages are there for Iowans year-round. “When saving for their loved ones with College Savings Iowa, participants can also save on their taxes,” Fitzgerald added. “Not only are earnings federally tax-deferred and Iowa state tax-free, but if College Savings Iowa participants are Iowa taxpayers, they can deduct up to $3,474 per beneficiary account from their 2021 state income taxes.”*

Other benefits of saving with College Savings Iowa include ease and flexibility to use the funds. A College Savings Iowa plan allows participants to pay for education expenses such as tuition, books, supplies, certain room and board costs and more. The funds can be used at any eligible college, university, community college, technical training school or apprenticeship program in the United States or abroad.**

Since Fitzgerald launched the plan in 1998, College Savings Iowa has grown to more than $6 billion in assets and over $3.4 billion has been used for education expenses. Those looking to learn more about College Savings Iowa can find great resources about the plan by visiting CollegeSavingsIowa.com or calling (888) 672-9116. Iowans can register for the giveaway at Iowa529Contest.com. For more information about future giveaways and events, find College Savings Iowa on Facebook and Twitter.

*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.
**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.