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IOWA

College Savings Iowa

Type: Savings

Phone: 888-672-9116

State tax deduction for residents: Deduction for contributions up to $2,230 per beneficiary each year

Open to nonresidents: Yes

Refund provisions: Penalty of 10% of earnings

Minimum/maximum contributions: $50 / $239,000

This plan has a lot going for it: low costs, several investment options and a top-notch fund manager. This plan uses Vanguard index funds and thus is one of the lowest-cost plans available. The four age-based portfolios are generally more aggressive than those in most states but have outperformed their peers in the past year. All but two of the eight fixed portfolios ranging from 100% equity to 100% money market have performed slightly above average. In this plan, the beneficiary must be under age 18 when the account is opened and must use the balance by age 30. Costs are 0.65% per year in fund expenses.

State College Savings Plans