Save on Taxes While Saving for College

Save on Taxes While Saving for College

February 10, 2024

A 529 Plan is a great tool to utilize as you are planning out the future of a child in your life. Not only does it enable money to grow tax free for educational purposes, but there are also tax deductions available in the state of Iowa.

For 2024, Iowa taxpayers who contribute to a 529 plan can deduct up to $4,028 of their contribution, per beneficiary, from their taxable income. The deduction can be maximized if each parent, for example, contributes to an account for the benefit of each child. As outlined in the graph below, a family of 4 can deduct up to $16,112 on their Iowa Tax Return if they maximize their contributions.

If you have additional questions regarding how to best utilize 529 College Savings Plans for your financial goals, please reach out to your advisor and we will gladly assist you.

Source: College Savings Iowa