A 529 plan is a type of investment account one can use to save for a student's higher education and now - thanks to Federal and state law changes - can be utilized to save for K-12 education. 529 plans are most often sponsored and administered by states. In Iowa, the 529 plan is called College Savings Iowa and is administered by the Office of the State Treasurer.
Almost anyone can open a 529 account including parents, grandparents and other family members. An account owner deposits money into the 529 account, chooses the investments and beneficiary (the student), and determines how the money is eventually used. 529 account funds grow tax-deferred. If you are an Iowa taxpayer, you can also take a state tax deduction of up to $3,319 in contributions per beneficiary (student) for 2018. You will not pay taxes on money withdrawn from your College Savings Iowa 529 account to pay for qualified higher-education and K-12 expenses.
You can find more information on the
College Savings Iowa website, but be advised that the site is
not updated as to all of the new changes for K-12 529 plans.