Attention Iowa Private School and Home School Families! This is a 529 update!!
Did you know that in some states private school and home school tuition expenses are eligible to be withdrawn from a 529 account? As an example, in the state of Iowa, a tax deduction is available for Iowa residents. Currently, the deduction is a maximum $3,522 per beneficiary per donor per year.
We often think of the 529 as just a college savings plan. However, there are other potential qualified uses. Currently, funds can be withdrawn for any of the qualified educational expenses listed below.
• College education expenses (including books and other expenses)
• Tuition for private education in the state of Iowa
• Tuition for co-op or homeschool assistance programs
The funds in a 529 plan are earmarked to cover future educational expenses. The use of a 529 plan toward non-college expenses could be a tax efficient strategy for you, depending upon your family’s situation. Hypothetically, a two-parent family with 3 children could deduct up to $21,132 from their income for state tax purposes.
Should you have more questions on how this provision within a 529 plan may apply to you and your family, I'd love to chat with you! Please call 319-232-2171.
As a bonus, remember to ask how a non-qualified account (after tax dollars) can be used and leveraged alongside a 529 plan.
#Planning
#Education
#IowaTaxes
Offered through a brokerage arrangement with Thrivent Investment Management Inc. 529 college savings plans are not guaranteed or insured by the FDIC and may lose value.
Consider the investment objectives, risks, charges, and expenses associated before investing. Read the issuers official statement carefully for additional information before investing.
Investigate possible state tax benefits that may be available based on the state sponsor of the plan, the residency of the account owner, and the account beneficiary. Consult with a tax professional to analyze all tax implications prior to investing.
Thrivent and its financial advisors and professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.
The hypothetical example provided is for illustrative purposes and may not be representative of actual results. Tax laws are subject to change.
See thrivent.com/social for additional information
See collegesavingsiowa.com for sources
