A First-Time Homebuyer Savings Account (FTHSA) is a new type of savings account passed by the Iowa legislature to make purchasing a first home easier. The law allows Iowans to make tax-deductible contributions into a First-Time Homebuyer Savings Account to be used for the purchase of a home. Those who already own a home can open and contribute to an account for a designated first-time homebuyer and receive a tax deduction on Iowa state taxes too.
The FTHSA is a brand new account that will be available starting January 2, 2018 at Marion County Bank. Consult your tax or legal professional for definitive legal guidelines and instructions or view the Iowa Legislature's State Senate File 505 for details of the law.
Account Benefits at Marion County Bank:
Interest Earning -
- The FTHSA at Marion County Bank is interest earning. Contact Customer Service for current rate.
Iowa Tax Benefits -
- The account holder may claim a deduction for Iowa individual income tax made during the year by the account holder. The amount deducted may not exceed $2,000 a year. Married taxpayers who file a joint return may deduct up to $4,000 a year if the FTHSA is opened and maintained as a joint account.
- Interest earned on account balances is also exempt from Iowa income tax.
- The state of Iowa tax deduction for account contributions is available for up to ten years.
- The annual deduction limits are adjusted annually for inflation.
Home Purchasing Navigation -
- Purchasing a first home is an exciting and often daunting process. Our Home Loan experts at Marion County Bank are available to help you or your account beneficiary walk through the steps of account opening, loan pre-qualification, and mortgage product guidance. Contact Marion County Bank to start the home purchasing journey.