Why is money called dough? Because everybody “kneads” it.
Everyone’s financial goals and timelines are different, especially when saving and using money for education. Learning is more than just a path to college, and because of this, College Savings Iowa is now ISave 529. New name, same great benefits! Whether you are saving for a child, grandchild, favorite neighbor or yourself, ISave 529 is here to help make education dreams a reality.
Our plan started as a tool to help save for traditional two- and four-year college, and now we have expanded to K-12 education, apprenticeships, vocational and trade schools. Additionally, up to $10,000 can be used to repay any qualified education loan of the beneficiary, and there is an option to rollover funds into the beneficiary’s Roth IRA.
When it comes to paying for your students’ education, saving now is usually more cost-efficient than borrowing later. In fact, without the benefits of compounding interest, waiting to borrow money when your student reaches higher-education age could cost you hundreds, if not thousands of dollars. It is sometimes hard to visualize what small, consistent contributions can make, but doing so over time adds up. With the option to roll over funds to a Roth IRA or transfer funds to another eligible family member, we provide flexible solutions based on feedback from account owners on what to do after they are done using ISave 529 if they do have funds still in the account.
529 plans provide families with a way to save for education with tax advantages. Earnings grow federally tax-deferred, qualified withdrawals are tax-free and Iowans who contribute to their accounts will receive a state tax deduction of up to $5,500 per beneficiary for 2024.
As a father of four, one of the things I love about having 529s for my children is that loved ones can contribute to their accounts, or set up an account for my kids so they can partake in the tax deduction benefits as well. It’s an easy way to give your monetary gift with purpose.
Growing up, I remember getting cash in my birthday cards and putting the money into a savings account. Now, I have an opportunity with our 529 accounts to teach my kids about saving and investing. My kids can set aside money in a traditional savings account for something they want and invest the rest for something they might need. Using our 529 accounts allow us to discuss money and teach our children why we save. It also shows that each child can have different goals and paths, but financial education is essential to everyone.
To celebrate our new name, we’re giving away one $5,290 ISave 529 account contribution to an Iowa resident — that’s enough to cover one year of tuition at an Iowa community college. Visit Iowa529contest.com by Sept. 30, 2024, for a chance to win. No purchase is necessary, and rules are available at Iowa529contest.com.
My goal for ISave 529 is to support savers in their savings journey.
Where will ISave 529 take you?
For more information about ISave 529, call 888-672-9116 or visit ISave529.com to obtain a program description. Investment objectives, risks, charges, expenses and other important information are included in the program description; read and consider it carefully before investing.
Roby Smith serves as Iowa’s state treasurer. He was elected in November 2022.
