Treasurer Promotes College Savings Plan as Long-Term Gift Option

With Christmas shopping wrapped up for the year, Iowa State Treasurer Roby Smith says families may want to consider a long-term gift for children and grandchildren.

Smith says toys and games often lose their appeal shortly after the holidays.

“Sometimes those gifts, you know, toys get put away in January,” Smith says.

He encourages families to think about starting or contributing to a college savings account through the state’s I-Save 529 plan, which he oversees.

“This is a way to help pay for college, trade school, apprenticeships, or other qualified education expenses down the road,” Smith says. “So it’s a gift that you’re giving for the future and to make your loved one better opportunities in the future.”

Smith says friends and family members can also contribute to a child’s education account.

“Let’s imagine you have an account for your child,” Smith says. “You download the app, receive a gift code, and then you could text or email it to a family member that wanted to give the gift. Once they receive that code, they log into a secure website and make the gift, and it goes straight into the I-Save 529 account.”

Smith says account holders can choose from several investment options.

“They can choose a more aggressive account or a more conservative return,” Smith says. “It just depends on what they want to look at as far as their risk tolerance.”

Smith adds that contributions to the I-Save 529 plan can be deducted from state income taxes. More information is available at ISave529.com.