Expansion of section 529 plans under section 302 of the SECURE Act
(Updated July 31, 2020)
The SECURE Act allows tax-free distributions from 529 plans to pay for certain expenses required for participation in an apprenticeship program, and for distributions used to make certain student loan payments beginning in 2019. On June 29, 2020, Governor Reynolds signed House File 2641 into law. That legislation allows Iowa taxpayer's to make certain withdrawals from Iowa 529 plans to pay for certain expenses required for participation in an apprenticeship program and to make certain student loan payments for tax years beginning on or after January 1, 2019 without having to include such withdrawals as income for Iowa tax purposes.