State Treasurer Roby Smith is reminding Iowans of the benefits of 529 accounts with a 529 Day giveaway. “For this year’s celebration, we are giving away an out-of-this-world $1,000 College Savings Iowa contribution to a new or existing account!” said Smith. “Don’t miss this opportunity to boost your child’s education savings. Visit Iowa529Contest.com and register by May 31.”
Recognized annually on May 29, 529 Day raises awareness about the value of using a 529 plan, such as College Savings Iowa, as a tax-advantaged way to save for future education expenses. Earnings grow tax-deferred with qualified withdrawals being federally tax free and all withdrawals being free of Iowa taxes. Additionally, Iowa taxpayers saving with the Plan can deduct up to $5,500 in contributions per Beneficiary account from their 2024 state income taxes.
Funds in an account can be used for tuition, room and board, books, computers, supplies and other education-related expenses at any eligible education institution in the U.S. or abroad, including two- and four-year colleges, apprenticeship programs and trade schools. Additionally, up to $10,000 can be withdrawn to pay for tuition expenses in connection with enrollment at a K-12 institution per year or used for repayment of any qualified education loan.
