The First-Time Homebuyer Savings Account (FTHSA) program is now available in the state of Iowa and offered at Ascentra Credit Union. Accounts may be established by qualifying first-time homebuyers or by others on their behalf.
Taxpayers may deduct a portion of money saved from their Iowa adjusted gross income deposits made into their FTHSA. Other benefits include:
- Interest earned from account is not taxable on Iowa tax returns
- Pays a higher dividend rate than regular savings account
- Maximum annual deduction adjusts for inflation
There are specific requirements to qualify for these and other benefits of the program. The account owner is responsible to ensure the beneficiary’s eligibility as a first-time homebuyer.
Ascentra members can open a FTHSA through Online Account Access, by calling 563-355-0152 or 1-800-426-5241, ext. 1, or stopping in to any of our convenient locations. Check out our website for more information.
Consult your tax preparer for information about how contributions to, and distributions from, an Iowa first-time homebuyer savings account may affect your state or federal taxes. To learn more about the program, please visit the Iowa Department of Revenue.