State Treasurer Roby Smith announces Iowa taxpayers can deduct up to $5,800 in contributions per ISave 529 Beneficiary account from their income taxes in 2025. “With ISave 529, saving for education goes hand-in-hand with saving on taxes,” said Smith. “Since the deduction applies to each Beneficiary account, you can save even more when both adults open an account for each child – a total deduction of $23,200 for a family of four.”
ISave 529 is the State’s only direct-sold 529 plan, which means an account can be opened without a financial advisor. Account Owners can choose from four Age-Based Savings Tracks that adjust automatically based on the child’s age or create their own mix of up to five of 12 Individual Portfolios. “The flexibility of ISave 529 makes it so appealing for Iowans and savers nationwide,” Smith said. “And that goes for more than just investments. ISave 529 can help a child reach a one-of-a-kind dream that’s as unique as they are.”
Money in an ISave 529 account can be used for tuition, room and board, books and other qualified education expenses at any accredited higher education institution in the U.S. or abroad, including community colleges, universities or graduate programs. Savings can also be used for equipment, tools and other materials required for apprenticeship programs.
In addition to higher education, funds can be used to pay for tuition expenses in connection with enrollment at a K-12 institution, repayment of qualified education loans or rolled over to the Beneficiary’s Roth IRA.
Learn more at ISave529.com. Follow ISave 529 on Facebook, Instagram and X for current events and updates. For additional details about ISave 529, read the Program Description.
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