DES MOINES, IA (08/01/2012)(readMedia)-- State Treasurer Michael Fitzgerald announced today that the College Savings Iowa 529 Plan has reduced its fees by over 20%. "This marks the fourth time in five years that College Savings Iowa has been able to reduce its fees," said Treasurer Fitzgerald. "This means more money stays in the account where it belongs, making it a great value for Iowans saving for future college expenses." The price reduction, effective August 1, 2012, will bring the annual asset-based fees of the plan's portfolios down from 0.34% to 0.28%.
"The plan's new lower costs will enable participants to put more of their investment returns toward the right place: their children's education," Fitzgerald said. "College Savings Iowa continues to share the benefits of its growth by lowering expenses, which is a testament to the commitment of the Plan to deliver well-managed college savings investments at low costs to Iowans."
College Savings Iowa 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 - parents, grandparents, friends and relatives - can invest in College Savings Iowa on behalf of a child. Participants who are Iowa taxpayers can deduct contributions up to $2,975 per beneficiary from their 2012 adjusted gross income, and there are no income or residency restrictions.* Investment returns are not guaranteed and you could lose money by investing in the plan. For more information about College Savings Iowa, visit www.collegesavingsiowa.com or call 1-999-672-9116.
*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.
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Investment returns are not guaranteed and you could lose money by investing in the plan. Participants assume all investment risks as well as responsibility for any federal and state tax consequences. If you are not an Iowa taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
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.
College Savings Iowa is an Iowa trust sponsored by the Iowa State Treasurer's Office. The Treasurer of the State of Iowa sponsors and is responsible for overseeing the administration of the College Savings Iowa 529 Plan. The Vanguard Group, Inc., serves as Investment Manager and Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., assists the Treasurer with marketing and distributing the Plan. Upromise Investment Advisors, LLC, provides records administration services. The Plan's portfolios, although they invest in Vanguard mutual funds, are not mutual funds.
