Investment Management

About IAdvisor 529 Program

The IAdvisor 529 Plan is a customizable, multi-manager plan with flexible pricing that can help investors meet their college funding goals. For details on the program, including planning tools, investment menus and application forms, go to the IAdvisor 529 Plan website.

Plan Flexibility

  • Parents, grandparents, family and friends can contribute to the IAdvisor 529 Plan, which currently permits funding of up to $420,000 per beneficiary
  • Contributions of as little as $50 a month or $25 a pay period per investment option can be made through automatic investments
  • The account owner maintains control of the assets including the ability to change the beneficiary to another family member at any time1
  • The plan accepts rollovers from other 529 plans, Coverdell Education Savings Accounts (formerly Education IRAs) and qualified U.S. savings bonds (Series EE and I)
  • Estate planning features unique to 529
  • Flexible share classes

Tax Advantages

  • Earnings grow deferred from federal and state income taxes
  • Withdrawals for qualified educational expenses at eligible higher education institutions are also free from federal and Iowa state income taxes for Iowa taxpayers2 3
  • Contributions of up to $3,239 (adjusted annually for inflation) per beneficiary per taxpayer are deductible from Iowa taxable income in 2017.4 For example, married Iowa participants who contribute to accounts on behalf of their two children can deduct up to $12,956 (4 x $3,239). Please note that for 2016 tax purposes, the deduction limit was $3,188.
  • Effective for tax years beginning on or after January 1, 2015, Iowa taxpayers may now elect to treat contributions to their IAdvisor 529 Plan account made up through the deadline (excluding extensions) for filing an individual Iowa state income tax return (generally April 30). Qualifying contributions are deducted on line 24, item "g." of your Iowa income tax return.

Estate and Gift Tax Treatment of Contributions

  • Contributions of up to $14,000 per beneficiary each year ($28,000 if married, filing jointly) can be made without incurring gift tax consequences
  • As an alternative, clients can elect an accelerated gift of up to $70,000 in a single year ($140,000 if married, filing jointly) and treat it as if it was made over a five-year period5
  • Contributions are considered completed gifts for federal gift and estate tax purposes

Investment Options Customizable to Your Clients’ Needs

The IAdvisor 529 Plan offers a variety of investment options that you can personalize to client needs in three ways:

  • Age-based option that automatically reallocates as the beneficiary gets closer to college
  • Static allocation options based on risk level
  • Build a portfolio using single fund options across a range of styles and asset classes

1Please see the Program Description for definition of a “family member.”

2 Eligible expenses must be related to enrollment or attendance at an eligible educational institution as defined by section 529 of the Internal Revenue Code. Eligible expenses may include but are not limited to tuition and fees, books, supplies, equipment and certain room and board. An eligible educational institution is any college, university, vocational school, or other post secondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education.

3 Non-qualified withdrawals may be subject to federal and state taxes and an additional federal 10% tax.

4 If withdrawals are not qualified, the deductions must be added back to Iowa taxable income.

5 In the event the contributor does not survive the five-year period, a pro-rated amount will revert back to the contributor’s taxable estate.

The IAdvisor 529 Plan is offered by the Iowa Educational Savings Plan Trust, a trust organized under Iowa law and administered by the Iowa State Treasurer’s Office. The Treasurer of the State of Iowa is responsible for overseeing the administration of the IAdvisor 529 Plan.

The Options in the IAdvisor 529 Plan are not mutual funds, although they invest in mutual funds. An investment in the IAdvisor 529 Plan is an investment in municipal securities and the value of the Options will vary depending on the value of the underlying funds in which the Options invest. Investment returns are not guaranteed and you could lose money by investing in the IAdvisor 529 Plan.

These securities are not registered with the U.S. Securities and Exchange Commission (“SEC”) or any state, nor is the IAdvisor 529 Plan or any of the IAdvisor 529 Plan Options registered as an investment company with the SEC or any state.

If you are not an Iowa taxpayer, consider before investing whether your or the beneficiary’s home state offers a 529 plan with favorable state tax or other benefits that may only be available through investments in that state’s 529 plan and which are not available through investment in the IAdvisor 529 Plan.

Non-qualified withdrawals may be subject to federal and state taxes and an additional federal 10% tax.

The tax information herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.

An investor should consider the investment objectives, risks, charges and expenses associated with the IAdvisor 529 Plan before investing. More information about the IAdvisor 529 Plan is available in the Program Description. You may obtain a Program Description obtain a Program Description by clicking here or by calling 800-774-5127. The Program Description should be read carefully before investing.

Not FDIC Insured • No Bank Guarantee • May Lose Value

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