Treasurer Smith Highlights College Savings Iowa as Savings Vehicle for K-12 Education

DES MOINES, IA (07/25/2024) (readMedia)-- As families plan for the upcoming school year, State Treasurer Roby Smith is reminding Iowans how the College Savings Iowa 529 plan can be used to achieve a variety of education savings goals, including K-12. "College Savings Iowa continues to expand the mindset that 529 plans can only be used for traditional two- and four-year college," Smith said. "For families that want to put money aside to pay for K-12 tuition at a public or private school, while also receiving all the tax benefits 529 plans provide, College Savings Iowa could be the answer."

Up to $10,000 per year per student can be withdrawn from a College Savings Iowa account to pay for tuition expenses in connection with enrollment at a K-12 institution. "We're here to help support families in their education savings journey, whatever that may be for them and their student," continued Smith. "It's what College Savings Iowa is all about."

In addition to K-12 tuition, money invested in College Savings Iowa can be used to pay for tuition; room and board; computers; textbooks and other qualified education expenses at any eligible higher education institution in the U.S. or abroad. This includes colleges, universities, trade schools and apprenticeship programs. Additionally, up to $10,000 can be used for repayment on any qualified education loan of the Beneficiary or a sibling of the Beneficiary.

As a 529 plan, College Savings Iowa also offers tax advantages such as tax-deferred earnings and tax-free qualified withdrawals. Plus, there is an added tax benefit of deducting up to $5,500 in contributions per Beneficiary account from 2024 Iowa income taxes.

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

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