General InformationDownload PDF Report
College Savings Iowa
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.
- Program typeSavings
- State agencyState Treasurer of Iowa
- Tax deduction
- Program ManagerState Treasurer of Iowa, Ascensus College Savings, and The Vanguard Group
- Program distributorState Treasurer of Iowa and Vanguard Marketing Group
- Manager contract termUNLOCK PRO
Ratings & Rankings
Our overall rating for non-residents
This is an excellent program with many benefits for the participant and positive investment attributes. If it has any significant weaknesses then it also has some particularly good things to recommend it.
Each plan's performance score is developed directly from Savingforcollege.com's Quarterly 529 Performance Rankings. A 529 savings plan must have at least one year of performance history before they will be assigned a 5-cap rating. For those plans that are not part of our quarterly performance rankings, such as plans offering a single set of bank-based investment options, we assign a performance score by evaluating the returns currently available on similar types of investments outside of 529 plans.
State residency requirements: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.
Significant time or age restrictions imposed by the program:None
Did you know?
IA residents can claim a tax deduction for contributions to a IA 529 plan.
Contributions are deductible in computing state taxable income
529 plan contributions grow tax-free.
Withdrawals are tax-free when used to pay for qualified higher education expenses.
You can contribute as much as you want, as often as you want.
The key is to get started. Enroll today by completing a quick form online.
Maximum contributions:Accepts contributions until all account balances in Iowa's 529 plans for the same beneficiary reach $420,000.
Minimum contributions:$25, or $15 per pay period via payroll deduction.
Age-based 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.View more age-based investment options
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.View more static investment options
Underlying investments:Vanguard mutual funds.View a full list of this plan's investment options
Underlying fund allocations:UNLOCK PRO
Portfolio Fees & Performance LookupUNLOCK PRO
Fees & Expenses
Enrollment or application fee:None.
Account maintenance fee:None.
Program management fees:0.20% manager fee; fee includes underlying fund expenses.
Expenses of the underlying investments:Not applicable, included in the program management fee.
Total asset-based expense ratio:0.20%
Taxes and other Benefits
- Tax deduction for single filers$3,387/yr
- Tax deduction for joint filers$6,774/yr
Married filing jointly residents contributing $100/month can expect an additional $0 a year in tax savings.
Program match on contributions:None.
State tax deduction or credit for contributions:Contributions to an Iowa 529 plan of up to $3,387 for 2019 per beneficiary by an individual, and up to $6,774 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.
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.
State definition of qualified expensesThe state conforms with the federal definition of qualified education expenses, which includes expenses for higher education, as well as 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.
State tax treatment of qualified distributions:Qualified distributions from Iowa and non-Iowa 529 plans 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.
Does the sponsoring state exclude the value of an account for state financial aid purposes?Yes
Does participation in the program provide beneficiaries with any advantages in qualifying for resident tuition status at state institutions?No
Does the program have a formal agreement with a rewards program or outside scholarship 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.
Statutory protection of an account from creditors:UNLOCK PRO
Did you know?
Residents are not limited to investing in their own state's 529 plan.
Another state may offer a plan that performs better and has lower fees.
The 529 plan chosen does not affect which state the student enrolls in.
You can live in New York, open a plan from Nevada and send a student to college in Florida.
The best way to maximize your college savings?
Start early and save often. You can get started today with easy online enrollment.