There’s still time to donate to education savings plan to get a 2024 state tax break

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State Treasurer Roby Smith says you still contribute to an I-Save 529 plan for someone’s education and get a tax break for this year.

“So you have all the way till April 30th, that’s when taxes are due here in Iowa, ” he says. “There is one additional step you have to do just when you send in or make that deposit, you have to notate that you want it for tax year 2024.” The plan changed its name from College Savings Iowa this year to reflect that there are other types of education outside of college. You still get the same state tax break

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“Anything from January 1st to April 30th, 2025, if you wanted to count it for 2024 you just have to notate that when you go ahead and make that contribution,” Smith says. Smith says if you didn’t make a contribution as a Christmas gift, it’s still a good idea to make one now. “So we’re getting the message out that this is a great time of year to give a gift of education that will last them for an entire lifetime,” he says. The I-Save 529 plan used to be called College Savings Iowa, but was renamed as Smith says it no longer is just for paying traditional college costs.

The I-Save 529 money can be used tax-free for qualified education expenses at any eligible education institution, including two and four-year colleges, apprenticeship programs and trade schools. It can be used to pay for tuition expenses in connection with enrollment at a K-12 institution, repayment of qualified education loans or rolled over to the Beneficiary’s Roth IRA.