State Plan

Iowa 529 Plan

Iowa offers two 529 college savings plan, a traditional 529 plan called College Savings Iowa, and an advisor-sold tuition plan called Iowa Advisor 529 Plan.

College Savings Iowa

College Savings Iowa is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Direct – this Iowa 529 Plan can be purchased directly from the state.

Fund Family: The Vanguard Group

Minimums: To get started you can deposit $25, and the minimum subsequent contribution is also $25.

Maximum Contributions: Currently, you can contribute to your Iowa 529 plan until your aggregate balance per beneficiary reaches $320,000. Of course, your total amount in the plan can be higher as your investments group. 529 plans typically increase the contribution limit over time, so you may be able to contribute more.

Tax Benefits: Good news for Iowa residents — by investing in your state’s 529 plan, you can deduct up to $3,045 on your state income taxes per beneficiary. So if you have two children you can deduct twice that amount. Married couples contributing to separate accounts can double that. You also get federal income tax benefits. Out-of-state participants still get the federal tax benefits.

Other Benefits: Through your College Savings Iowa plan, you have the option to be a part of a reward program set up by Upromise. By making purchases with your card, the reward program offers a percentage of purchases that convert into rewards points, and ultimately convert into account contributions.

Residency: College Savings Iowa is open to all United States residents, not just those in Iowa.

You can learn more about the this 529 plan at the official web site.

Iowa Advisor 529 Plan

Iowa Advisor 529 Plan is a traditional 529 plan that allows you to invest money today and reap tax benefits when you withdraw it to pay for qualified education expenses.

Type: Advisor. Please contact a financial advisor in your state for assistance setting up an Iowa Advisor 529 college savings plan.

Fund Family: Various

Minimums: To get started you can deposit $50, and the minimum subsequent contribution is $50 unless you transfer from the Upromise rewards service. In this case, the minimum subsequent contribution is $25.

Maximum Contributions: Contact advisor.

Tax Benefits: By investing in your state’s 529 plan, you can deduct up to $2,865 on your state income taxes for single filer and $5,730 for married filers. You also get federal income tax benefits as you do not pay income tax on your earnings. Out-of-state participants still get the federal tax benefits.

Other Benefits: Through your Iowa Advisor 529 Plan, you have the option to be a part of a reward program set up by Upromise. By making purchases with your card, the reward program offers a percentage of purchases that convert into rewards points, and ultimately convert into account contributions.

Residency: College Savings Iowa is open to all United States residents, not just those in Iowa.

You can learn more about the this 529 plan at the official web site.