Iowa Educational Savings Plans Trust

Things keep getting better!

The state tax deduction was increased to $5,500 and there were changes to Roth IRA rollovers for Iowans.

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Lowered Fees = More Savings

Our one and only fee was reduced! Pay just
$1.70 per year for every $1,000 invested.

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For every child. For any dream.

Create a world of possibilities.

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on For every child. For any dream.

Being a parent is full of challenges.

Saving for your child’s education
isn’t one of them.

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on Being a parent is full of challenges.

College Savings Iowa 529 helps you plan now for their tomorrow.

If you have 10 minutes and $25, you can get started!

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529 basics
Plan highlights
Saving early matters

What you need to know about 529s.

Defining 529s
A 529 plan is a type of investment account you can use to save for qualified education expenses. 529 plans are usually sponsored by states, and College Savings Iowa is a 529 plan established and sponsored by the State of Iowa.

The term 529 comes from Section 529 of the Internal Revenue Code, which specifies the tax advantages available to those saving in a 529 plan. The investments grow with federally tax-deferred earnings, and distributions are tax free when used to pay for qualified education expenses.

Terms to Know
Participant: The adult opening a College Savings Iowa account. This can be just about anybody, including parents, grandparents, other relatives and friends.

Beneficiary: The future student, or person the College Savings Iowa account is opened for. This can be a child, grandchild, friend or even the Participant themselves.

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Why College Savings Iowa could help you make dreams a reality.

Maintain Control
College Savings Iowa is the state’s direct-sold 529 plan, which means you can open an account on your own – without a financial advisor. As a Participant, you will pick investments, choose a Beneficiary and determine how, and when, the money is used. You always maintain control of and make decisions about the account.

Receive Tax Benefits
Your account earnings grow federally tax-deferred, which means you pay no taxes on your qualified withdrawals. Additionally, if you are an Iowa taxpayer, all withdrawals are free from state income taxes and you could receive a state tax deduction for your contributions. More money for education rather than taxes? Yes, please.

Make Manageable Contributions
There are no fees to open an account – you just need an initial investment of at least $25 to get started. Each additional contribution can be as little as $25, or $15 when contributing through an employer's payroll direct deposit plan.

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Benefits beyond the tuition bill.

A little support goes a long way.
Don’t cut yourself short – by saving for a student in your life, you’re doing more than paying tuition and other education-related expenses. You’re fostering a dream!

A child with a dedicated education savings account of $1 to $499 is over three times more likely to enroll in college than a child with no savings account, and is more than four and a half times more likely to graduate. Little by little, you could be the difference between a dream and a reality.

Savings vs. borrowing: the numbers don't lie.
Spoiler alert: While it may seem like a good idea to borrow everything your Beneficiary will need for higher education when the time comes, this is a mistake that could cost you hundreds, if not thousands, of dollars.

Make your money work for you.
No matter the age of your Beneficiary, saving now usually beats borrowing later. But if you find yourself thinking, “I have plenty of time, I can wait,” think again! With compounding, you could maximize your savings when you start now.

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Helping families save for their super students for over 25 years

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