This September, my office and College Savings Iowa are celebrating College Savings Month, the month-long celebration of 529 savings plans. Be sure to take the time during this College Savings Month to learn more about College Savings Iowa and how a 529 plan can help you and your family save more to reach higher education goals. Everyone can get involved, so if you already have a College Savings Iowa account open, don’t forget to get your friends and family involved. With this 529 program, you can save for any kind of future for your children, grandchildren and even for yourself. If you want to learn more about College Savings Iowa, you can visit our website at CollegeSavingsIowa.com or call our education specialists at 888-672-9116.
Another great reason to celebrate 529 plans and College Savings Iowa is the tax benefits savers and students can receive. Iowa taxpayers can receive the benefit of a state tax deduction every year when they save with College Savings Iowa, while withdrawals are federally and state tax-free when used for qualified education expenses. For 2019, Iowa tax payers can deduct up to $3,387 in contributions per beneficiary account from their 2019 Iowa state taxes.* A married couple with two children will be able to deduct up to $13,548 in College Savings Iowa contributions on their 2019 state taxes as an example.
Keep an eye on my office’s social media platforms for more ways to celebrate College Savings Month with us. You can connect with the plan on Facebook and Twitter to stay up to date on current giveaways, news and events.
*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. The availability of tax or other benefits may be contingent on meeting other requirements.