DES MOINES, Iowa – According to Investment News, families who choose Iowa’s College Savings Iowa 529 plan get an “A” grade on their funds when it’s time to send their children off to college. “According to Morningstar and reported by Investment News, College Savings Iowa’s age-based investments are rated as one of the top three in the entire nation,” State Treasurer Michael Fitzgerald said. “It is great to have an independent source say that we are one of the best options when it comes to helping families get prepared for their children’s future education.”
Iowa's College Savings Iowa Gets an 'A'
The Investment News article, published on August 25, 2016, by John Waggoner, summarizes Morningstar’s May release of its 529 College Savings Plan Landscape. Morningstar, a leading provider of investment research, categorizes 529 plans into high, moderate and low equity funds, and Investment News rated College Savings Iowa’s high equity funds as the best in the nation. College Savings Iowa’s aggressive growth fund for students age 11 to 15 were the best in the country with a growth of 8.61%, and Iowa’s aggressive fund for students age 16 to 18 was the second best with a growth of 7.47% in one year. For Morningstar’s moderate equity group, College Savings Iowa’s aggressive age-based plan for students age 11 to 15 came in third with a growth of 7.47% for the year. “No matter which category was being looked at, Morningstar and Investment News had Iowa’s College Savings Iowa as one of the best and top rated 529 plans in the country,” Fitzgerald stated
The Investment News article also reminded its readers that along with performance and growth, tax breaks are a powerful attraction to 529 plans. With a College Savings Iowa account, Iowa taxpayers can deduct up to $3,188 in contributions per beneficiary from their adjusted gross income.*
For more information about College Savings Iowa, visit CollegeSavingsIowa.com or call 1-888-672-9116. You can also connect with the plan on Facebook and Twitter (@Iowa529Plan) to stay up to date on current giveaways and events.
*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.
**Earnings on non-qualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state income taxes. 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.