State Treasurer of Iowa

Debunking 529 myths

Fiction: Only one 529 account can be opened for a child.

Fact: The whole family can get involved in saving for a child by opening their own accounts for the same beneficiary. Parents and grandparents can each open an account for the same child and make contributions to their individual College Savings Iowa account. This is a great way to maximize the state tax deduction for Iowa taxpayers and others who can deduct their contributions. For example, two parents with two children could open four accounts; two accounts for each child. This allows the parents to deduct their contributions from all four accounts.

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