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IAdvisor 529 Plan

The IAdvisor 529 Plan is managed by Voya Investment Management Co. LLC. Voya succeeded Upromise Investments as program manager in March 2013. The revised program features an age-based option, five static allocation options, and 13 single fund options utilizing Voya funds managed by BG Overseas, BlackRock Financial Management, CBRE Clarion, Credit Suisse, DIFA, Goldman Sachs, Hahn Capital Management, JPMorgan, Lazard, LSV, Polaris, Van Eck, Voya IM, and Wellington Management. To find a financial advisor in your area, use the Directory of Financial Professionals.

Our Ratingx

3 of 5

Fee Scorex

2.5 of 5

Performancex

2.5 of 5

  • Program typeSavings
  • Inception2006, but substantially changed in 2013
  • State agency
    State Treasurer of Iowa
  • Tax deduction
    Tax deduction for single filers $3,319/yr
    Tax deduction for joint filers $6,638/yr
  • Program Manager
    Voya Investment Management Co. LLC
  • Program distributor
    Voya Investments Distributor, LLC
  • Manager contract termUNLOCK PRO

Ratings & Rankings

Our overall rating for IA residents

This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

Our overall rating for non-residents

This is a very good program that offers valuable benefits but may have some limitations or concerns that investors need to know.

Savingforcollege.com's 5-Cap Ratings provides an evaluation and comparison of 529 plans, utilizing a formula that examines dozens of factors grouped into the following categories.


2.01of 5

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.

Eligibility

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

Contributions

Maximum contributions:

Accepts contributions until all account balances in Iowa's 529 plans for the same beneficiary reach $420,000.

Minimum contributions:

With lump-sum contributions, the minimum initial and subsequent contribution is $250 per investment option ($50 per month per option with the automatic investment plan, $25 per pay period per option with payroll direct deposit).

Investment Options

Age-based investment options:

The Age-Based Option contains 5 portfolios of underlying funds. Contributions are placed into the portfolio corresponding to the beneficiary's age or as selected by the account owner, and later reassigned to more conservative portfolios as the beneficiary approaches college.View more age-based investment options

Static investment options:

Select among 5 static allocation portfolios and 13 individual-fund portfolios investing in mutual funds managed by BG Overseas, BlackRock Financial Management, CBRE Clarion, Credit Suisse, DIFA, Goldman Sachs, Hahn Capital Management, JPMorgan, Lazard, LSV, Polaris, Van Eck, Voya IM, and Wellington Management.View more static investment options

Underlying investments:

Mutual funds from BG Overseas, BlackRock Financial Management, CBRE Clarion, Credit Suisse, DIFA, Goldman Sachs, Hahn Capital Management, JPMorgan, Lazard, LSV, Polaris, Van Eck, Voya IM, and Wellington Management.View a full list of this plan's investment options

Underlying fund allocations:

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Portfolio Fees & Performance Lookup

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Fees & Expenses

Enrollment or application fee:

None.

Account maintenance fee:

$25 annually, waived if the account balance in each investment option is greater than $25,000; waived for accounts with an automatic investment plan or payroll direct deposit of $100 per month in each investment option running on a monthly basis for 12 consecutive months.

Program management fees:

0.50% (0.40% for Money Market) management fee includes 0.075% fee to the state, plus distribution/marketing fee of 0.25% (Class A) or 1.00% (Class C, except Money Market is 0.25%).

Expenses of the underlying investments:

0.45% - 0.71% in the age-based and static options; 0.26% - 1.05% in the individual options.

Total asset-based expense ratio:

Class A: 0.98% - 1.80%
Class C: 0.98% - 2.55%

Broker loads and commissions:

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Breakpoint pricing:

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Taxes and other Benefits

  • Tax deduction for single filers$3,319/yr
  • Tax deduction for joint filers$6,638/yr

Example

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 $3,319 for 2018 per beneficiary by an individual, and up to $6,638 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 expenses

The 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 the IAdvisor 529 Plan.

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.

Upromise Helps Families Save for College

Upromise Helps Families Save for College

Statutory protection of an account from creditors:

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Distributions & Terminations

To whom are distributions made payable:

Eligible educational institution, beneficiary, or account owner, as directed by the account owner

Account Changes

Policy regarding participant/owner changes:

Accepts requests to transfer account ownership.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

No

Documents and other services accessible or downloadable on the program's public Web site:

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Contact

Website:

http://www.iowaadvisor529.com

Telephone:

1-800-774-5127

Telephone for broker use:

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State News

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