Iowa 529 Plan: What College Savers Should Know
Editor & Writer
Editor & Writer
Share this Article
The Federal Reserve recorded a $6 billion balance in Iowa 529 plans.[1] 529 college savings accounts help people save for college for themselves or beneficiaries like children or grandchildren. They usually also offer tax benefits.
Check out Iowa's 529 options below, and learn about the state's tax rules for contributing to these accounts.
Iowa 529 Plans
Iowa offers two college savings plans. One is self-guided. The other is an advisor plan, meaning a financial advisor helps you make investment decisions. This plan comes with a maintenance fee.
College Savings Iowa 529 Plan
- Requires State Residency? No
- K-12 Expenses Eligible? Yes
- Fees: 0.18%
- Performance Notes: The Moderate Growth Portfolio has averaged 5.25% in returns since its creation.
IAdvisor 529 Plan
- Requires State Residency? No
- K-12 Expenses Eligible? Yes
- Fees: 0.83-2.26% plus a $25 annual maintenance fee
- Performance Notes: The Moderate Option has averaged 4.95% in returns since its creation.
Behind the Numbers
All 529 college savings plans change over time with market fluctuations. We last updated our performance notes in January 2023.
Also, keep in mind that there are multiple Iowa 529 portfolios to choose from in both plans, including conservative and aggressive investing options.
Iowa 529 Rules and Tax Deductions
According to the College Savings Plan Network:[2]
- In Iowa, you can contribute up to $420,000 in total to college savings plans.
- You can use savings from an Iowa 529 to pay for K-12 education expenses, too.
- State residents can deduct annual contributions to an Iowa 529 on their taxes — up to $3,522 if they're single and $7,044 if they're married and filing jointly.
