College Savings Iowa Deduction Increases for 2011

The amount of deduction you can take for contributions to a “College Savings Iowa” program has increased by $54 for 2011.  The maximum deduction is now $2,865 per child, up from $2,811 in 2010.  The deduction limit is per parent, per child, so a married couple with two kids could deduct up to $11,460 in 2011 (4 x $2,865).

College Savings Iowa is Iowa’s form of a “529 plan” that lets you save for college expenses.  Distributions from the plan are tax-free as long as the money is used for college expenses.  I wrote more about College Savings Iowa in this article.

Thanks to my friends at Radio Iowa for tipping me off to this story.