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Summary
College Savings Iowa is a direct-sold 529 college savings plan available to residents of any state offering low fees and 14 investment options from Vanguard. Iowa residents may enjoy a state tax deduction for contributions to the plan.
New York's direct-sold 529 college savings plan is available to residents of any state. It offers low fees and diverse investment options featuring Vanguard mutual funds. New York residents may enjoy a state tax deduction for contributions to the plan. There is no minimum contribution to start saving with New York's 529 College Savings Program and you can enroll online in minutes.
Program type
Savings
Savings
How to enroll
Enroll directly with the program.
Enroll directly with the program.
Initial year of operation
1998
1998, but substantially changed in November 2003
State agency(ies)
State Treasurer of Iowa
Office of the State Comptroller and the New York State Higher Education Services Corporation
Program manager
State Treasurer of Iowa, Ascensus College Savings, and The Vanguard Group
Ascensus College Savings
Program distributor
State Treasurer of Iowa.
Vanguard Marketing Corporation
State residency requirements
None
None
Who can be a participant/owner in the program?
U.S. citizens and resident aliens at least 18 years old, and UGMA/UTMA custodians.
U.S. citizens and resident aliens including minors, UGMA/UTMA custodians, and legal entities.
Significant time or age restrictions imposed by the program
None
None
Maximum contributions
Accepts contributions until all account balances in Iowa's 529 plans for the same beneficiary reach $420,000.
Accepts contributions until all account balances in New York's 529 plans for the same beneficiary reach $520,000.
Minimum contributions
$25, or $15 per pay period via payroll deduction.
No minimum.
Does the program offer an e-gifting platform for receiving gift contributions?
This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.
This plan offers a robust gifting platform that allows gift-givers to save their own profile for recurring or future contributions.
Age-based/Enrollment Year investment options
The Age-Based option is offered in 4 different risk levels (Aggressive, Growth, Moderate Growth and Conservative Growth) each containing nine portfolios of underlying mutual funds. Contributions are placed into the portfolio corresponding to the risk level selected and the age of the beneficiary, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
The Target Enrollment Portfolios offers Contribution are placed into the portfolio corresponding to the selected risk level and beneficiary's age, and later reassigned to more conservative portfolios as the beneficiary approaches college age.
Static investment options
Select among 6 multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, Income, and Conservative Income) and 4 individual-fund portfolios.
Select among 5 multi-fund portfolios (Aggressive Growth, Growth, Moderate Growth, Conservative Growth, and Income), 8 individual fund portfolios, and the Interest Accumulation portfolio.
Underlying investments
Vanguard mutual funds.
Vanguard mutual funds.
Enrollment or application fee
None.
None.
Account maintenance fee
None.
None.
Program management fees
0.18% manager fee; fee includes underlying fund expenses.
0.12% manager fee; fee includes underlying fund expenses.
Expenses of the underlying investments
Not applicable, included in the program management fee.
Not applicable, included in the program management fee.
Total asset-based expense ratio
0.18%
0.12%
Program match on contributions
None.
None.
State tax deduction or credit for contributions
Contributions to an Iowa 529 plan of up to $4,028 for 2024 per beneficiary by an individual, and up to $8,056 per beneficiary by married taxpayers filing jointly who each make their own contributions, are deductible in computing Iowa taxable income. The maximum deduction increases each year with inflation. Only contributions made by the account owner are deductible. Contribution deadline is December 31 postmark. Iowa residents may elect to treat contributions made through the deadline (excluding extensions) for filing an individual Iowa state income tax return (generally April 30) as having been made in the prior year in order to claim the allowable annual deduction on their Iowa state tax return for the prior year.
Contributions to a New York 529 plan of up to $5,000 per year by an individual, and up to $10,000 per year by a married couple filing jointly, are deductible in computing New York taxable income. Only contributions made by the account owner, or if filing jointly, by the account owner's spouse, are deductible. Contribution deadline is December 31 postmark.
State tax recapture provisions
The principal portion of rollovers and nonqualified withdrawals from this plan are included in Iowa taxable income to the extent of prior Iowa tax deductions.
The principal portion of rollovers and nonqualified withdrawals from this plan are subject to New York tax to the extent of prior New York tax deductions, but only after removal of non-deducted contributions. A rollover for this purpose does not include a trustee-to-trustee transfer between two different accounts in New York's 529 plan.
State definition of qualified expenses
The state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, apprenticeship programs, interest and/or principal on qualified education loans up to a $10,000 lifetime cap, and up to $10,000 per year in tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school. For Iowa state income tax purposes, a withdrawal for payment of K-12 Tuition Expenses at a K--12 school which is not located in Iowa or which is not accredited under Iowa Code Section 256.11 or does not adhere to the provisions of the federal Civil Rights Act of 1964 and Iowa Code Chapter 216 will be treated as a nonqualified withdrawal and taxed as income to the extent previously deducted as a contribution to College Savings Iowa. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.
The state's definition of qualified education expenses currently includes expenses for attendance at an institution of higher education or an apprenticeship program, as defined by the Internal Revenue Code and its regulations addressing qualified state tuition programs. This does not include tuition for elementary or secondary education, or education loan payments. Distributions from a 529 account directly to a Roth IRA are not considered a qualified expense for state income tax purposes.
State tax treatment of qualified distributions
Qualified distributions from Iowa and non-Iowa 529 plans are exempt.
Qualified distributions from New York and non-New York 529 plans (via conformity to the federal tax exclusion) are exempt.
State tax treatment of rollovers
Iowa follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
New York follows tax-free treatment for rollovers except that, according to a New York State Dept. of Taxation and Finance interpretation, a rollover out of a New York 529 plan is treated as a nonqualified withdrawal. A direct trustee-to-trustee rollover between two New York 529 accounts is not treated as a nonqualified withdrawal for this purpose.
Does the sponsoring state exclude the value of an account for state financial aid purposes?
Yes
Yes
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?
No
No
Is there a rewards program or outside scholarship program that works with this program?
Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
Yes, the Upromise Rewards program can be linked to any 529 college savings plan. Upromise Rewards is free to join and offers members cash back for college.
To whom are distributions made payable
Eligible educational institution, beneficiary, or account owner, as directed by the account owner.
Choice of account owner, beneficiary, or eligible educational institution; if the institution, then the withdrawal amount is first directed to the NY Higher Education Services Corp. and then paid to the institution from HESC.
Policy regarding participant/owner changes
Accepts requests to transfer account ownership.
Accepts requests to transfer account ownership.
Does participant have online password-protected access to account?
Yes
Yes
Can the complete enrollment process including funding be done online?
Yes
Yes
Telephone
1-888-672-9116
1-877-697-2837