Hi, we’re College Savings Iowa.
College Savings Iowa is Iowa’s direct-sold 529 plan and is administered by State Treasurer Roby Smith. It provides a tax-advantaged way to save for future education costs on behalf of a future scholar, which could be a child, grandchild, neighbor or even yourself!
What do those tax-advantages look like? For starters, the earnings on your investments grow deferred from federal and state income taxes. But wait, there’s more! The money in your account is also federally tax-free if withdrawn to pay for tuition, room and board, books, supplies and other qualified expenses, and all withdrawals are free from Iowa income taxes if you are an Iowa taxpayer. Don’t forget about the state tax deduction, too!
Where can you use your investments? Good news! College Savings Iowa funds can be used at any eligible education institution in the United States or abroad, including two- and four-year colleges, apprenticeship programs, trade schools and graduate schools. Yep, you read that right. Your student has so many possibilities, and they don’t have to pursue higher education in Iowa. You can also use up to $10,000 per year, per student for tuition expenses at a K-12 institution.
As for investments, you have options. Do it yourself-er? Consider managing your own investment strategy by choosing from our Individual Portfolios. Prefer to have someone manage your investments for you? Take a look at our Age-Based Savings Tracks, which automatically adjust to be more conservative as your student ages.
The cost of education is only rising, and saving ahead of time is one of the best ways you can prepare. Getting started is easy and only takes a minimum $25 investment. If you have any questions along the way, contact us!
For details about College Savings Iowa, read the Program Description.