Third Reduction in Three Years
DES MOINES, IA (09/22/2010)(readMedia)-- State Treasurer Michael Fitzgerald announced today that the College Savings Iowa 529 Plan has reduced expenses for plan participants by one third. The annual asset-based fee on the plan's entire lineup of investment options has been reduced from 0.50% to 0.34%. The reduction will become effective on October 15, 2010.
College Savings Iowa makes it simple by offering all of its thirteen investment options at the same affordable price. With no additional account fees, the plan's all-in 0.34% expense puts it among the most competitive 529 plans available to college savers nationwide.
"College Savings Iowa has grown to over $2.2 billion in assets due to its nationwide appeal," Fitzgerald stated. "That growth has given us the ability to continue to lower the expenses, which allows investors to keep more money working toward their college savings goals."
The plan has a history of lowering expenses; since 2007, a series of expense reductions have lowered the all-in costs of each of the plan's investment options from 0.62% to 0.34% today.
"We're pleased to help deliver savings to College Savings Iowa investors," said Vanguard Chairman and CEO Bill McNabb.
College Savings Iowa has continually received high marks from organizations rating 529 plans across the nation, including Savingforcollege.com and Morningstar, which each rate 529 plans across the nation. Additionally, HLN money expert Clark Howard recently named the 529 plan as one of the top three in the country.
College Savings Iowa is designed to provide families a tax-advantaged way to save money for their children's higher education. The plan lets anyone - parents, grandparents, friends and relatives - invest for college. Iowa taxpayers can deduct up to $2,811 in contributions per beneficiary account from their adjusted gross income in 2010.* Investors do not need to be a state resident and can withdraw their investment tax-free to pay for qualified higher education expenses including tuition, books, supplies and room and board at any eligible college, university, community college or accredited technical training school in the United States or abroad.** Participants in College Savings Iowa can also take advantage of Upromise®, which enables families to earn cash rewards from their everyday spending.*** For more information about College Savings Iowa, visit www.collegesavingsiowa.com or call 1-888-672-9116.