Iowa 529 Plan: What College Savers Should Know

Updated on July 7, 2023

Edited by

• Fact-checked by Marley Hall

There are two Iowa 529 plans: one direct-sold and one advisor-led. Learn the difference between the two.

Historic Capitol Building on the University of Iowa Campus

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The Federal Reserve recorded a $6 billion balance in Iowa 529 plans.^[1]529 college savings accounts help people save for college for themselves or beneficiaries like children or grandchildren. They usually also offer tax benefits.

Check out Iowa’s 529 options below, and learn about the state’s tax rules for contributing to these accounts.

Iowa 529 Plans

Iowa offers two college savings plans. One is self-guided. The other is an advisor plan, meaning a financial advisor helps you make investment decisions. This plan comes with a maintenance fee.

College Savings Iowa 529 Plan

Requires State Residency? No
K-12 Expenses Eligible? Yes
Fees: 0.18%
Performance Notes: The Moderate Growth Portfolio has averaged 5.25% in returns since its creation.

IAdvisor 529 Plan

Requires State Residency? No
K-12 Expenses Eligible? Yes
Fees: 0.83-2.26% plus a $25 annual maintenance fee
Performance Notes: The Moderate Option has averaged 4.95% in returns since its creation.

Behind the Numbers

All 529 college savings plans change over time with market fluctuations. We last updated our performance notes in January 2023.

Also, keep in mind that there are multiple Iowa 529 portfolios to choose from in both plans, including conservative and aggressive investing options.

Iowa 529 Rules and Tax Deductions

According to the College Savings Plan Network:^[2]

In Iowa, you can contribute up to $420,000 in total to college savings plans.
You can use savings from an Iowa 529 to pay for K-12 education expenses, too.
State residents can deduct annual contributions to an Iowa 529 on their taxes — up to $3,522 if they’re single and $7,044 if they’re married and filing jointly.