State Treasurer Michael L. Fitzgerald announced today that College Savings Iowa has once again reduced its fees. “In the last decade we have had seven price reductions, resulting in over a 65% decrease in fees in ten years,” Fitzgerald said. “By consistently lowering fees over time, we are ensuring that more money stays in parents’ and grandparents’ accounts, growing alongside the children. The plan continues to be a great value for Iowans saving for future higher education expenses.” Today’s price reduction brings the annual asset-based fees of College Savings Iowa’s portfolios down from 0.26% to 0.20%, a 23% reduction effective January 1, 2017. This means that investors pay only $2.00 per $1,000 invested, annually.
College Savings Iowa Cuts Costs Again
“In the last ten years, our assets have nearly quadrupled as account owners have $4.2 billion invested,” Fitzgerald said. “College Savings Iowa continues to share the benefits of its growth by lowering expenses, which is a testament to the plan’s commitment to deliver well-managed college savings investments at low costs.” The program has over 240,000 accounts established with an average plan account size of over $17,000.
College Savings Iowa, created in 1998, offers families a tax-advantaged way to save money for their children’s higher education. It only takes $25 to open an account, and anyone can invest in College Savings Iowa on behalf of a child. Participants who are Iowa taxpayers can deduct contributions up to $3,239 per beneficiary from their 2017 adjusted gross income, and there are no income or residency restrictions.* For more information about College Savings Iowa, visit CollegeSavingsIowa.com or call 1-888-672-9116.
*Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. The availability of tax or other benefits may be contingent on meeting other requirements.
For more information about the College Savings Iowa 529 Plan, call 888-672-9116 or visit www.collegesavingsiowa.com to obtain a Program Description. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor.