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.
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