The amount of deduction you can take for contributions to a "College Savings Iowa" program has increased by $54 for 2011. The maximum deduction is now $2,865 per child, up from $2,811 in 2010. The deduction limit is per parent, per child, so a married couple with two kids could deduct up to $11,460 in 2011 (4 x $2,865).
College Savings Iowa is Iowa's form of a "529 plan" that lets you save for college expenses. Distributions from the plan are tax-free as long as the money is used for college expenses. I wrote more about College Savings Iowa in this article.
Thanks to my friends at Radio Iowa for tipping me off to this story.
Showing posts with label 529 Plans. Show all posts
Showing posts with label 529 Plans. Show all posts
Friday, January 7, 2011
Monday, January 3, 2011
Iowa Deduction Finder: College Savings Iowa
One way to save for your children's or grandchildren's college tuition is through a "529 Plan." A 529 Plan allows for tax-free earnings on investments, and distributions from the plan are tax-free as long as the distribution is used for college expenses.
As an added bonus, Iowa allows a tax deduction for contributions to an Iowa 529 Plan (in Iowa it's called "College Savings Iowa"). For 2010, you can deduct up to $2,811 per parent per child for contributions to a College Savings Iowa Plan. So a married couple with two kids could deduct up to $11,244 of contributions ($2,811 x 4).
Read more at the College Savings Iowa website.
As an added bonus, Iowa allows a tax deduction for contributions to an Iowa 529 Plan (in Iowa it's called "College Savings Iowa"). For 2010, you can deduct up to $2,811 per parent per child for contributions to a College Savings Iowa Plan. So a married couple with two kids could deduct up to $11,244 of contributions ($2,811 x 4).
Read more at the College Savings Iowa website.
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