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THERE'S STILL TIME TO FUND YOUR COLLEGE SAVINGS IOWA PLAN

December 27, 2006

December 31 is the last day you can fund a contribution to College Savings Iowa and still get a deduction on your 2006 Iowa personal tax return for it.

College Savings Iowa is Iowa's "Section 529" plan. Earnings in a Section 529 plan grow tax free, and are tax exempt if they are withdrawn for college costs. The Iowa plan invests in low-cost Vanguard funds, popular among people who don't care to squander their investments on high-priced fund managers.

You may deduct College Savings Iowa contributions in 2006 of $2,500 per donor, per donee. That means a married couple with two children can deduct up to $10,000 on their Iowa return. Visit the College Savings Iowa website for details, or to enroll online. The CSI website says checks must be received by January 6, 2007 to be credited for 2006.

Even if you already have a child in college, this is a good deal for Iowans. To the extent you can funnel your tuition payments through CSI, you can get an Iowa tax deduction for tuition up to the Iowa contribution limits.

 • 2006 year-end tax planning       Bookmark: del.icio.us • Digg • reddit