College Savings Iowa refers to a tax-advantaged way for Iowa residents to save for college expenses. It’s a type of 529 Plan, where money going into the plan is not tax deductible (for federal taxes) but money coming out not taxed as long as it’s used for qualifying expenses.
Money put into College Savings Iowa is tax deductible on the Iowa tax return, up to $3,163 per person on 2015 tax returns. For parents putting money into the plan for their kids, the limit is $3,163 x 2, or $6,326.
For more information about the program, visit the College Savings Iowa website.
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