DES MOINES, Iowa – State Treasurer Michael Fitzgerald is excited to announce the Iowa income tax deduction has increased for those saving with College Savings Iowa.*
“Account owners who are Iowa taxpayers can deduct the first $3,439 they contribute per beneficiary account from their state taxable income in 2020,” Fitzgerald said. “This tax deduction is a great way to save for others while keeping more money in your pocket.”
Fitzgerald created College Savings Iowa more than 20 years ago and worked to grow the plan to over $5 billion. “I am extremely proud of this important savings program and have made it my goal to continually improve upon our benefits every year,” Fitzgerald stated. “Whether you’re saving for community college, university, technical training schools, grad schools or more, saving with College Savings Iowa can help you achieve your higher education and career aspirations.”
College Savings Iowa is a 529 program that lets parents, grandparents, friends and relatives invest for higher education on behalf of a future scholar. A 529 plan is a type of investment account you can use to save for qualified education expenses. With funds and earnings from a College Savings Iowa account, families can pay for qualified expenses like tuition, room, board, books, supplies and more at any accredited program around the country.** College Savings Iowa holds over $5.2 billion in assets with more than 248,000 active accounts and almost $3 billion used for qualified educational expenses.
For more information about College Savings Iowa, call (888) 672-9116 or visit CollegeSavingsIowa.com. Connect with the plan on Facebook and Twitter to stay up to date on current events and plan updates.
*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.
**Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state income taxes. The availability of tax or other benefits may be contingent on meeting other requirements