Investing in Your Family's Future with 529 Plans

Apr 1, 2026

Planning for a child or grandchild’s education is one of the strongest ways families can help them get started financially. 529 college savings plans offer a tax advantaged way for parents, grandparents, and other family members to save for education expenses, and can be a cornerstone of long term financial planning.A 529 plan is a state sponsored savings account designed to help families invest for future education costs. Your contributions grow tax deferred, and withdrawals used for qualified education expenses are tax free at the federal level. This includes tuition, fees, books, supplies, and depending on the plan, certain apprenticeship and K-12 expenses.

Iowa offers the ISave 529 Plan, a college savings plan where contributions grow tax free and can be used for qualified education expenses. Iowa residents may also enjoy a state income tax deduction for contributions. Learn more and open an account at isave529.com.

Illinois families can choose between two Bright Start: Illinois 529 College Savings plans. These plans also offer tax deferred growth and, for Illinois taxpayers, a state income tax deduction. Bright Start is known as one of the nation’s highly rated 529 plans. Find plan details and links at illinoistreasurer.gov/college-savings.

How families benefit:

Tax advantages: Contributions may reduce your state taxable income in both Iowa and Illinois.
Flexible use: Funds can pay for college, vocational schools, and other qualified programs.
Family involvement: Parents and grandparents can contribute, creating a legacy of support.
Control: The account owner retains control of funds and can change the beneficiary if plans change.

Getting started is simple, and every contribution, no matter the size, can make a meaningful difference over time. By taking advantage of the tax benefits and flexibility 529 plans offer, families can build a strong foundation for future education expenses while easing the financial burden down the road.