College Savings Iowa hits $3 billion in withdrawls

DES MOINES, Iowa -- The College Savings Iowa program has hit a big milestone.

The State Treasurer's Office says the 529 plan's had more than $3 billion dollars in withdrawals since it was created in 1998.

"To pay for their children's college education, or their trade school, training or what have you. It's not just putting money in--it's a real easy process, and with no cost, to have the money withdrawn and sent to the university" says State Treasurer Michael Fitzgerald.

He says the money can be used for more than just college or university costs--it can also be used to pay for for community colleges, technical schools and graduate programs.

Fitzgerald says 529 plans like College Savings Iowa are good way to save money for education against a rising tide of student debt.

"One-and-a-half trillion dollars is borrowed nationwide in student debt. This is a way Iowans are saving ahead, keeping their debts down, and it's really working for them" he says.

Fitzgerald says Iowa taxpayers contributing to College Savings Iowa can deduct up to $3,439 per account from their state taxable income in 2020.

College Savings Iowa has more than $5 billion in assets in nearly 250,000 accounts.

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