State Treasurer of Iowa Roby Smith announced this year Iowans can deduct up to $5,800 in contributions to ISave 529 plans from their income taxes. Smith announced this for Iowans for their upcoming taxes in 2025.

Smith outlined the potential, ““Since the deduction applies to each Beneficiary account, you can save even more when both adults open an account for each child – a total deduction of $23,200 for a family of four.”The plan can  support expenses that involve education including those at community colleges, universities, or graduate programs, with things like tuition, room and board, and books.

The money can also purchase equipment for your child to go into an apprenticeship program.  Funds can also be used for enrollment at a K-12 school, repayment of qualified education loans, or rolled over to the beneficiary’s Roth IRA. ISave 529 is established and sponsored by the State of Iowa.

Adults can open ISave 529 accounts to benefit a child, grandchild, or friend. Learn more about the 529 plans with a link with this story at KCIIRadio.com.