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.
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