Since 1998, State Treasurer Michael Fitzgerald has been helping Iowans save for higher education and earn tax breaks at the same time. College Savings Iowa was created in 1998 as Iowa's first 529 plan. It is sold directly to Iowans and people across the country. In 2006, Iowa introduced the IAdvisor 529 Plan. This plan is sold through financial planners. While each plan differs in the investment choices and the method of distribution, both plans share the same goal - get people saving for education.
For 2021, if an Iowa taxpayer is a College Savings Iowa or IAdvisor 529 Plan account owner, they can deduct the first $3,474 they contribute per beneficiary account from their state taxable income.* For example, married participants who contribute to separate accounts on behalf of their two children can deduct up to $13,896 (4 x $3,474) on their 2021 Iowa taxes.
*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.
Updates for Iowa's 529 Plans
- Read through the Iowa 529 Tax Deadline Fact Sheet (PDF) for information regarding the contribution deadline for tax year 2020.
- Learn about using Iowa's 529 plans in regards to K-12 tuition in the K-12 Fact Sheet for Iowans (PDF).
- Keep up-to-date on the legislation changes in regards to apprenticeship expenses and loan repayments by reading our SECURE Act Fact Sheet (PDF).
Learn More About Saving for Education
- Request a speaker for your event by completing the Speaker Request form.
- Check out the Iowa 529 Plans Fact Sheet (PDF) to see total assets, total accounts, amount that's been withdrawn to pay for education and more across all of Iowa's 529 plans.