Iowa 529 College Savings Plans

Consumer plans fall under three categories: direct-sold, unit-type prepaid, and contract-type prepaid.

529 plans allow investors to purchase directly from the plan manager. You will have to rely on your own research to identify your best options, or you can hire a fee-based financial planner.

Direct-sold 529 plans are approved and monitored by each state and are managed by professional investment firms. There are no sales charges with these plans.

Unit-type prepaid plans allow you to buy 'units' of tuition which may equate to credits or hours.

Contract-type prepaid plans can be purchased to cover between 1 to 5 years of future tuition either on a lump sum or installment basis.

Advisor-Sold 529 plans are sold only through financial advisors. Using an advisor means you get the benefit of advice and expertise of an investment professional, but may mean you pay sales charges or incur other fees that are used to compensate the advisor.

529 ABLE accounts allow americans living with disabilities to save money for college and other expenses in a tax-deferred account without affecting their eligibility to receive medicaid, supplemental security income or other public benefits.