State Treasurer Roby Smith is encouraging Iowans to maximize their tax refunds with College Savings Iowa. “If you are receiving a tax refund this year, we have a great option to ensure you invest it wisely,” said Smith. “College Savings Iowa is perfect for families who want to invest in their children’s education.”
College Savings Iowa allows anyone, including parents, grandparents, other relatives and friends, to save for education on behalf of a future scholar. “If you’re a current saver – great! Make additional contributions with your tax refund to get a jump start on the year,” Smith continued. “New to the Plan? All it takes is 10 minutes and an initial $25 contribution to get started.” College Savings Iowa offers a variety of investment options, which includes 10 individual portfolios and four age-based tracks, which automatically adjust a Participant’s investments to be more conservative as the child ages.
The Plan also offers tax incentives, including tax-deferred earnings, tax-free withdrawals and a tax deduction for Iowa taxpayers. In 2023, up to $3,785 in contributions per beneficiary account can be deducted from Iowa income taxes. Additionally, it isn’t too late for participants to make a contribution for the 2022 tax year. Savers have until May 1 to contribute and deduct up to $3,522 from their 2022 Iowa income taxes. “The tax benefits of College Savings Iowa are the icing on the cake,” concluded Smith. “Visit our website to learn about all the Plan has to offer.”
College Savings Iowa is administered by Treasurer Smith and is the State’s only direct-sold 529 plan. With funds and earnings from their accounts, College Savings Iowa participants have withdrawn more than $4.4 billion to pay for qualified expenses like tuition, room, board, books, supplies and more at accredited programs around the country.
Connect with College Savings Iowa on Facebook and Twitter to stay up to date on current events and Plan 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.
