DES MOINES —
State Treasurer Michael Fitzgerald announced that the College Savings Iowa 529 Plan has reduced its fees by more than 20 percent.
"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 Aug. 1, will bring the annual asset-based fees of the plan's portfolios down from 0.34 percent to 0.28 percent.
"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.