Effective May 19, 2017, College Savings Iowa is undergoing two changes. We are redesigning our four age-based savings tracks to smooth the transition from more aggressive to more conservative investments as the student (beneficiary) nears college age. We are also adding a stable value investment option as a replacement for Vanguard Federal Money Market Fund. The new Vanguard Short-Term Reserves Fund will serve as an underlying investment in some of the plan’s portfolios. You do not need to take any action. The changes are automatic and will not count toward your two annual exchanges. To learn more about these changes, visit CollegeSavingsIowa.com, then go to Tools & resources, and under Plan updates, select Read our 30-day-notice brochure.
What these changes mean for you
To facilitate a smooth transition, College Savings Iowa participants will be unable to make transactions or account changes, either online or by phone, while the plan changes are being implemented from May 19 through May 22. For specific details on what will happen during this transition period, refer to the table on the right. If you are not invested in one of our age-based savings tracks, the glide path changes will not affect your account. However, if you do invest in one of these tracks, you should consider the age of your student and review the glide path charts in the 30-day-notice brochure to see if your investments will change. After May 19, 2017, participants who are invested in an age-based track may end up with more, less, or the same amount of stock exposure.