The new federal tax law allows the use of money in college savings plans to pay for tuition for elementary and high school students.
State Treasurer Mike Fitzgerald says the College Savings Iowa plan is not set up for that change though:
OC…..your can’t” :10
College Savings Iowa is what is known as a “529 plan” and it allows you to deduct contributions to the plan from your state income tax as long as the money is used for qualified college expenses.
Fitzgerald says the state deduction won’t be allowed for K-12 expenses unless the law changes.
OC……..a law change. :11
He says you should be aware of the issue as you prepare your tax returns for 2017.
OC………of Iowa”. :13
Fitzgerald says the attorney for the College Savings Iowa plan says money withdrawn from the plan for K-12 expenses under current state law would have to be added as income to your tax return.