2025 Iowa 529 Contribution Limits. Recent state legislation has increased the tax deduction amount up to $5,500 for contributions to iowa’s two 529 plans, college savings iowa and the iadvisor 529 plan, and iable, iowa’s achieving a better life experience. In turn, making large contributions all at once could lead to tax penalties.
If you are an account owner and also an iowa taxpayer, you can deduct up to $5,500 of your contributions per beneficiary account, including rollovers, from your iowa income taxes in 2024. The law bumps up that tax deduction amount to $5,500 in 2024 for contributions to 529 plans.