College Savings Iowa Blooms with Benefits for Families

DES MOINES, Iowa - State Treasurer Roby Smith is sharing a bouquet of benefits when saving with the College Savings Iowa 529 plan to nurture their children's education dreams. "With the promise of spring in the air, I invite parents, grandparents - anyone in the life of a child - to explore the benefits of saving with the Plan to help their children's future bloom," said Smith. "If you haven't started saving with the Plan yet, here are some reasons to start."

1. Qualified Expenses. Funds from a College Savings Iowa account can be used for a variety of qualified expenses including tuition at two- or four-year institutions; room and board; books and supplies; trade schools; apprenticeship programs; K-12 tuition; and student loan repayment.
2. Control. College Savings Iowa is a direct-sold 529 plan, meaning you can open an account without needing a financial advisor. Even when the Beneficiary turns 18, the account owner maintains control over the funds deciding when and how they are used.
3. Tax Benefits. Iowa taxpayers can deduct up to $4,028 per Beneficiary account from their state income taxes in 2024. Maximize the state tax deduction when both parents open accounts for their two children - increasing the deduction to $16,112 (4 x $4,028) in 2024. Additionally, assets in an account grow deferred from federal and state income taxes, and account owners will not pay federal or state taxes on withdrawals for qualified education expenses.
4. Anyone Can Save. Parents, grandparents, other family members or friends can open an account and save for education costs on behalf of a future scholar.
5. Investment Options. The Plan offers a variety of investment options, which includes 10 individual portfolios and four age-based tracks, which automatically adjust an account owner's investments to be more conservative as your child nears higher-education age.

"More than 284,700 accounts and more than $5 billion withdrawn to pay for qualified expenses shows families are reaping the benefits of saving with the Plan," concluded Smith. "If you haven't begun saving with College Savings Iowa yet, I encourage you to start today to build blossoming opportunities for your future scholar."

Connect with College Savings Iowa on Facebook, Instagram and X to stay informed on current events and updates. To learn more about College Savings Iowa, visit CollegeSavingsIowa.com or call (888) 672-9116. For additional details about the Plan, read the Program Description.

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