As families prepare for the upcoming school year, State Treasurer Roby Smith is reminding families to plan for education expenses through the College Savings Iowa 529 program. A common misconception about these popular savings programs is that they can only be used for post-secondary education, but Smith says, “College Savings Iowa continues to expand the mindset that 529 plans can only be used for traditional two- and four-year colleges. For families wanting to save for K-12 tuition at public or private schools while receiving tax benefits, College Savings Iowa could be the answer.” Families can withdraw up to $10,000 per year per student from a College Savings Iowa account to pay for K-12 tuition. Funds can also be used for tuition, room and board, computers, textbooks, and other qualified expenses at eligible higher education institutions, including trade schools and apprenticeship programs. Additionally, up to $10,000 can be used to repay qualified education loans for the beneficiary or a sibling. As a 529 plan, College Savings Iowa offers tax advantages like tax-deferred earnings and tax-free qualified withdrawals, plus the benefit of deducting up to $5,500 in contributions per beneficiary account from 2024 Iowa income taxes. For more information, visit www.CollegeSavingsIowa.com.
As Iowans Prepare For Back To School, State Treasurer Reminds Parents Of State’s 529 Plans
