If youre an Iowa parent, you may be thinking about contributing to an Iowa college savings plan in order to help fund the costs of your childs college education. This can be a great way to build up an investment over time so that your child is able to follow his or her educational goals. Take a look at some of the information below to learn more. If you have any questions about the use of college savings plans, meet with an attorney to discuss your specific needs.
This blog post discusses the Iowa Advisor 529 Plan.
What is the Iowa Advisor 529 Plan?
This is a plan that makes it possible to save for your childs education. An initial contribution of $50 must be made, and $50 a month or $150 a quarter must be contributed continuously. There is no income limit in place, so youre able to take advantage of this plan no matter what. Youre in full control of the account and are also able to change beneficiaries, if needed. Youre able to continue contributing until the account reaches a maximum of $320,000.
What are some of the benefits of the Iowa Advisor 529 Plan?
There are many benefits to this plan. This plan makes it easy for anyone to contribute to your childs future investment, including friends and relatives.
The account also has a low maintenance fee. Additionally, there are many tax benefits to this plan option. Your earnings will be both federally and state tax deferred.
All of your education related expense withdrawals are free of state and federal taxes. You can also can take a deduction from your state tax return, based on the contributions that youve made.
If youre looking to save for your childs education, now is the time to get started. If you have any questions about your college savings plan options, consult with a qualified estate planning attorney.