d. Iowa 529 College Savings Plan or Iowa Advisor 529 Plan (Non-qualifying withdrawals/cancellations)

Amounts received from the cancellation of a participation agreement or other non-qualifying withdrawal to the extent the amount was previously deducted on the IA 1040. Qualifying withdrawals may include up to $10,000 ($20,000 for tax years beginning after December 31, 2025) per beneficiary per year for tuition expenses of attending an accredited elementary or secondary (K-12) school in Iowa or an out-of-state elementary or secondary school that educates a beneficiary who is a child “requiring special education” under Iowa Code section 256B.2. The $10,000 per-beneficiary cap applies even if the beneficiary receives money from multiple Iowa 529 or Iowa Advisor 529 Plan accounts. The $10,000 annual cap does not apply to withdrawals used to pay qualified education expenses related to higher education. Qualifying withdrawals include withdrawals for certain expenses related to participation in an apprenticeship program and withdrawals, up to $10,000, used to pay either principal or interest on a qualified education loan on behalf of a beneficiary or a beneficiary’s sibling. If you withdrew funds from a 529 Plan to pay qualified higher education expenses and you received a refund of those funds, the refund amount is not considered a qualifying withdrawal if it is recontributed to the same Iowa 529 Plan account from which it was withdrawn within sixty (60) of the date of the refund. To be a qualifying withdrawal, the recontribution amount cannot exceed the amount of the refund from the qualifying higher education institution.

Taxpayers who make a qualifying transfer from a 529 plan to a Roth IRA on or after January 1, 2024 are no longer required to add-back the amount previously deducted when the provisions of IRC § 529(c)(3)(E) are met.

This modification can only be claimed on Column A. For the deduction related to Iowa 529 and Iowa Advisor 529 Plans, see Schedule 1, Line 14.