Iowa Educational Savings Plans Trust

Plan Highlights

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

Maintain Control

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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 funds in your account, even after your Beneficiary reaches age 18.

Receive Tax Benefits

Your account earnings grow federally tax-deferred, which means you pay no taxes on your qualified withdrawals.1 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.2 More money for education rather than taxes? Yes, please.

Review the Program Description for more information on tax benefits.

Tax Benefits


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. Plus, there are no minimums to keep the account open.


Have Flexibility

Where and when you want

There is no deadline to use your savings, and 529s are not just for traditional 4-year colleges. When you are ready, use your savings at any of the following eligible institutions:

Higher Education: 529 plans can be used for trade schools, universities, graduate programs, community colleges and even some study abroad programs. This includes schools both in the United States or abroad.

K-12 Education: Up to $10,000 can be withdrawn to pay for tuition at a qualified K-12 public, private or religious school. In addition, Iowa taxpayers can use the College Savings Iowa 529 Plan assets to pay for K-12 tuition with no Iowa state tax consequences as long as the student attends an elementary or secondary school in the state of Iowa which is accredited under Iowa Code Section 256.11 and adheres to the provisions of the federal Civil Rights Act of 1964 and Iowa Code Chapter 216, or (ii) an elementary or secondary school located outside the state of Iowa that educates a Beneficiary who meets the definition of “children requiring special education” in Iowa Code Section 265B.2.

Apprenticeships: Pay for expenses related to your certified apprenticeship program – including fees, books, supplies and equipment required for participation.

Education Loan Repayments: 529 assets can be used to pay for up to $10,000 as principal or interest on any qualified education loan of the beneficiary or a sibling of the original beneficiary.

More than just tuition

Use the money in your account to pay for a variety of qualified education expenses, including tuition; room and board (with limitations); books; supplies; fees; computers; and more.



Pay Little Fees

You pay only $1.70 per year for every $1,000 you invest (0.17% applied annually). There are no sales commissions or advisor fees, and no fees charged for enrollment, account maintenance or withdrawals, which other types of plans may charge.

Enjoy Savings Tools

Every College Savings Iowa Participant has access to an online account, Ugift®, Upromise® and the READYSAVE 529 app to help you reach your savings goals.



Diversify Your Investments

Choose one of our four Age-Based Savings Tracks and your money will automatically be moved from more aggressive (riskier) investments to more conservative ones as you get closer to using the funds for your Beneficiary. Or, if you prefer to manage your assets on your own, you have the option to choose from our 10 Individual Portfolios. You can select up to five - allowing you to create your own mix based on your investment strategy and risk tolerance.

Age-Based Savings Tracks

Individual Portfolios

Know There is Adaptability

If higher education isn’t in your Beneficiary’s plans or they do not end up needing what you have saved, you can transfer the account to an eligible family member or even save the money for yourself. The money in the account is always yours, and there are no time limits on when the funds must be used. You can always withdraw your investments, although they may be subject to taxes or penalties if they are taken as a non-qualified withdrawal. Review the Program Description for more information.

1The earnings portion of nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

2If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. Adjusted annually for inflation.

© 2024 Iowa Educational Savings Plans Trust. All rights reserved.