State Treasurer of Iowa

College Savings Iowa Receives Highest Rating from 529 Experts

June 23, 2009

DES MOINES, Iowa - State Treasurer Michael L. Fitzgerald announced today that College Savings Iowa has received a 5-Cap Rating for in-state residents by Savingforcollege.com. This is the highest rating a 529 plan can receive. Savingforcollege.com rates 529 plans across the nation based on flexibility, appealing investments, and additional benefits such as generous state tax incentives. Each plan is given a rating between one and five caps.

“We’re pleased that College Savings Iowa has achieved a 5-Cap Rating,” Fitzgerald stated. “We’ve worked hard to continue to improve the program in order to provide individuals with the best way to save for college.”

Visit www.savingforcollege.com to view the ratings.  According to the site, “This is a program that offers outstanding flexibility, attractive investments, and additional economic benefits (such as generous state tax incentives) that for some people, at least, will provide a substantial boost to their savings. There are few, if any, weaknesses noted in the program.”

College Savings Iowa is designed to give families a tax-advantaged way to save money for their children’s higher education. Investors can choose from thirteen Vanguard investment options, including four age-based investment tracks. Parents, grandparents, and others can invest in College Savings Iowa on behalf of a child.  Iowa taxpayers can deduct up to $2,800 per account from their 2009 state taxable income, and there are no income or residency restrictions.  The money grows tax-free and is state and federally tax exempt if used to pay for qualified expenses. 

For an enrollment kit or more information about College Savings Iowa, call toll free 1-888-672-9116 or visit www.collegesavingsiowa.com. 

For More Information:

Karen Austin, 515-281-7677, karen.austin@iowa.gov

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