State Treasurer of Iowa

Treasurer Smith Announces Reduced Fees for College Savings Iowa

May 1, 2024

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DES MOINES – State Treasurer Roby Smith announces College Savings Iowa has once again reduced its fees. “There are many important expenses fighting for our attention these days, which is why investing in your children’s education with College Savings Iowa is an accomplishment worth celebrating,” said Smith. “Now you can add even lower fees to your celebration! This exciting update helps keep more of your hard-earned savings in your account – right where it belongs.” 

The price reduction brings the asset-based fees of College Savings Iowa’s investment options down to 0.17%. This means account owners pay only $1.70 per year for every $1,000 invested. “It’s also worth mentioning there are no sales commissions or advisor fees, and no fees charged for enrollment, account maintenance or withdrawals,” Smith continued. “By reducing College Savings Iowa’s one and only fee, we’re continuing to make education savings easy and affordable!"

College Savings Iowa is the state’s direct-sold 529 plan and is administered by Smith. It offers a low-cost, tax-free way to save for tuition, room and board, books, computers and other qualified education expenses at eligible education institutions. This includes two- and four-year colleges, graduate programs and apprenticeship programs. Additionally, up to $10,000 can be used to pay for tuition expenses in connection with enrollment at a K-12 institution per year or used for repayment of any qualified education loan.

Other tax-savings include tax-deferred assets and an Iowa income tax deduction. Specifically in 2024, account owners can deduct up to $4,028 in contributions per Beneficiary account from Iowa income taxes. Since the deduction applies to each Beneficiary account, a family of four can maximize the state tax deduction when both parents open accounts for their two children – increasing the deduction to $16,112 (4 x $4,028) in 2024.

To learn more about College Savings Iowa, visit CollegeSavingsIowa.com or call (888) 672-9116. Connect with the Plan on Facebook, Instagram and X to stay up to date on current events and updates. For additional details about College Savings Iowa, read the Program Description.

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