529 College Savings Plan By State

Welcome to 529 College Savings Plan By State! We have everything you need to make your life easier as you begin your search for the best 529 College Savings Plan. State specific 529 plan details, contact information, step-by-step application process, and savings tips to help you achieve your college savings goals.

529 plan by state

Iowa 529 College Savings Plan

Do you live in Iowa and currently looking for a way to save for future tuition costs? Well, then you need to look into Iowa 529 plans. Iowa529 plans are the perfect combination of flexibility and tax deferred growth. Who doesn’t want their investment to be protected from Uncle Sam?

Iowa 529 Plan Tax Advantages

There are numerous tax advantages of an Iowa 529 plan. Let’s go over them. First, any money that you place within the 529 plan will grow tax free for the remainder of its life until you use it for college expenses. As long as the college expenses are approved, you will receive this tax benefit.

There are additional tax benefits for Iowa residents! All money that is invested as well as all earnings will be completely exempt from Iowa state tax. Again, this only applies if the money is spent on applicable college related expenses like textbooks and room/board. Also, you may deduct up to $2,975 per beneficiary. If you’re married, this means you can deduct even more at $11,900. This can be a real benefit for families living in Iowa.

Another benefit is the federal gift tax incentive. This incentive works by letting you contribute up to $65,000 without paying a federal gift tax. Instead of paying the gift tax, why not invest through an Iowa 529 plan and reduce your tax burden?

Flexible Features of the Iowa 529 plan

Flexibility is another fantastic benefit of the Iowa 529 plan. As long as you are over 18, you can open this 529 plan. As long as you are an Iowa resident, you can open an Iowa 529 plan! You can also save money for anyone in your family. This could even be your brother. The broad use of 529 plans makes it an excellent choice for anyone looking to save money for their future college costs.

Choosing your Investment Portfolio

Did you know that the Iowa 529 plan ranks in the top ten 529 plans in the country? The results come from a combination of low cost investment options through Vanguard and an emphasis on broad diversification. Vanguard has a long record of consistent performance and placing clients first above profits.

In 2004, Iowa decided to make their 529 plans even more attractive. A decision was made to join forces with Upromise Investment Advisors to provide Iowa residents with access to account online and added flexibility. Another note to make here is that Upromise gives back to the community. They give away a portion of your savings back to you to spend at local grocery stores and other big name companies. You can even have the money automatically re-invested into your bank account! Between Iowa, Vanguard and Upromise, this is a winning team sure to take your 529 savings to the top of the charts.

In terms of investment options, you will be able to choose between 4 age based savings plans and 10 individually picked portfolios. The choice is dependent on your risk tolerance and timeline until college starts. The age based portfolios will automatically change asset allocation over time. This is beneficial for American families that don’t want to bother with asset allocation. Compared to the age based option, the individual portfolio is more the more aggressive investor. You can choose between stocks, bonds, and even international stocks. The asset allocation will not change unless you choose to.

Iowa 529 Plan Fee Structure

There is an annual asset-based fee of 0.34%. You will notice that this fee structure is one of the lowest across the 50 529 plans. There is a reason why Iowa is ranked as one of the top 529 plans in the country!

Who manages it?

The Iowa 529 plan is managed by Vanguard, one of the most respected investment management companies in the world. Vanguard has a long track record of providing long term results and some of the lowest fees in the industry. Because Vanguard manages the Iowa 529 plan, you will have many investment options to choose from and all will have a low cost fee structure. Vanguard makes a great addition to this state’s 529 plan team.

Access to your Iowa 529 plan

Iowa has made it their goal to provide an intuitive access platform that is also very user friendly. Once you have your 529 account open, you will be able to access your Iowa 529 plan funds online and make changes as you wish. You will be able to retrieve performance information at any time. Also, if you end up opening multiple 529 plans, you can store all of them on a single account, in turn simplifying your life.

Eligible Institutions Nationwide

Like most 529 plans, you will be able to use the 529 plan funds at any University across the United States and abroad. You are not locked to Iowa. As you can see, this is a great benefit if you suddenly have to move for work. The Iowa 529 plan has you covered and you will be able to use it at any time in any state.

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