What’s the ISave 529 plan’s favorite motivational quote? “The best way to predict your future is to invest in it!”
OK, OK, I know that’s a bit corny, and while we’re not quite to planting season, tax time is getting closer. I wanted to make sure you’re aware of the ISave 529 plan and its amazing benefits. Trust me, this plan is a game-changer for families looking to save for their children’s future educational expenses — whether it’s tuition, books, tools, or even supplies and equipment.
It’s the perfect time of year to talk about planning for the future, especially when it comes to saving for your child’s education. As we approach the tax season, it’s important to consider every opportunity to minimize your tax burden while preparing for future educational costs. With ISave 529, Iowa taxpayers can take advantage of some unique financial benefits. For example, Iowa taxpayers who own an account can deduct contributions up to $5,800 per beneficiary account directly from their 2025 state income taxes, reducing the amount they owe.
But wait, the benefits don’t stop there! Another major advantage of ISave 529 is the earnings on your investment grow tax-deferred, as long as they are used for qualified educational expenses.
Low-cost investments are another plus. For every $1,000 invested, individuals only pay $1.70 per year! By minimizing the fees associated with managing your account, you can ensure a larger portion of your investment is being put to work for an educational future.
A key feature of the plan is its flexibility. ISave 529 is designed to not just pay tuition but qualified educational expenses. Funds in an ISave 529 account can help cover a wide range of necessary educational costs, making it one of the most versatile and beneficial ways to save for the future.
Another great benefit about ISave 529 is that it isn’t just for college — it can be used for all types of post-secondary education, including trade schools, apprenticeships, grad programs — and the uses don’t stop there. Funds in an ISave 529 account can also be used to pay for K-12 tuition and even possibly fund a Roth IRA for retirement in the future. Additionally, these funds don’t just have to be used in Iowa. They can be used at qualifying educational intuitions in-state, out-of-state and even internationally, too! So, no matter where your child’s education takes them, the ISave 529 plan will be right there to support their journey.
Ultimately, Iowa’s ISave 529 plan is an invaluable tool for families looking to plan ahead and minimize the financial strain of educational expenses. The tax advantages, combined with the ability to use the funds for a wide range of qualified educational expenses, make this plan a must-have for anyone looking to invest in their child’s future. By starting early and contributing regularly, you’ll be giving your child the best possible chance at a bright educational future.
And to sweeten the deal, ISave 529 has a $1,000 Spring Giveaway! It’s easy to enter. All you have to do is register a child in your life for the giveaway at ISave529.com. While you’re there, you can learn all about the fantastic benefits of this plan. Explore all the benefits of ISave 529 and start saving for your child’s future today!
For additional details, read the Program Description at ISave529.com.
Roby Smith serves as the State Treasurer of Iowa and lives in Davenport. For more information on the Treasurer and his duties, visit IowaTreasurer.gov.
