WATERLOO (KWWL) -
Two Cedar Valley children have an important first step in saving for college thanks to a give away through the State Treasurer's office.
3-year-old Abigail Hayes of Waterloo was awarded a $1,000 College Savings Iowa account. Allison Starbuck of Cedar Falls received a $529 account. Parents were able to enter their children into the Daycare Giveaway as part of College Savings Iowa's 529 Day Giveaway. The program awarded five $529 College Savings Iowa accounts.
"As a way to raise awareness about the importance of saving for higher education, we teamed up with daycares across the state to get information about College Savings Iowa into the hands of parents," said State Treasurer Michael Fitzgerald in a press release. "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 parent's need to borrow to cover educational expenses, which can help them-and their child-get through college with less debt."
College Savings Iowa 529 college savings plans can be started with a $25 deposit. Iowa taxpayers can deduct up to $2,975 per account from their 2012 adjusted gross income. The federally tax-free accounts can be used for any qualified higher education expense including tuition, books, and supplies to any eligible college, university, community college or technical training school in the U.S. For more information, visit the College Savings Iowa website or go to the Facebook page for future giveaway information.
