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Big Improvements to ISave 529
New investment options and reduced rates spark a summer of saving!
Issued July 2026
Treasurer’s Message
As we settle into summer, it's a great time to pause, enjoy the long days and look ahead to the opportunities this season brings. In the meantime, our team at ISave 529 has been working hard for account owners by reducing rates, ushering in a new era of investment choices and more.
Whether you’re planning family trips, cheering at ballgames or simply soaking up the sunshine, it’s also a perfect moment to check in on your savings goals. As always, thank you for trusting us to support your financial journey. I hope your summer is filled with connection, celebration and the confidence that comes from planning for the future.
Roby Smith
Iowa State Treasurer
A New Era of Investment Choices
ISave 529 introduced a major enhancement to how families can invest for education. On May 15, the plan shifted from its long-standing age-based savings tracks to a more flexible system of enrollment-based portfolios. This gives families more control and a better match between investment strategy and life goals.
The new enrollment-based portfolios let you choose the year you expect to begin making withdrawals and the investment mix adjusts from more aggressive to conservative automatically based on that timeline. You may also choose another portfolio if you would like your investments to be more aggressive or conservative. That’s the beauty of enrollment-based portfolios – flexibility.
Explore enrollment-based portfolios
Help Your Savings Grow
Good news – our only fee dipped even lower! The plan’s administrative fee dropped from 0.17% to 0.16% on July 1. This means you pay only $1.60 per year for every $1,000 you invest (0.16% applied annually). It’s a small change on paper, but over years of saving, even small reductions can help more of your money stay exactly where it belongs – working for your student.
What If…
There's a lot that could happen from the time an ISave 529 account is opened to the anticipated time when funds would be needed.
…the person I’m saving for doesn’t go to college or university?
There are so many paths to continued learning! Account funds can also be used for vocational or trade school, certified apprenticeship programs or credential programs.
…my child received a scholarship?
Oftentimes scholarships only cover the cost of tuition. Funds in an ISave 529 account can also be used for books, fees, equipment, supplies, a computer, room & board and more.
Account funds could also be rolled to a member of the beneficiary’s family (as defined in Part VIII Other Account Information—Member of the Family, in the Program Description PDF).
If the beneficiary receives a scholarship, you can withdraw money from the account for noneducational purposes up to the amount of the scholarship without the federal 10% penalty.*
…the person I’m saving for attends a U.S. Military Academy?
If the Beneficiary attends a U.S. Service Academy (the U.S. Naval Academy, the U.S. Air Force Academy, the U.S. Coast Guard Academy or the U.S. Merchant Marine Academy), you can withdraw money from the account for noneducational purposes up to the amount of the cost of the education at a U.S. military academy without incurring the 10% federal penalty on the earnings of the withdrawal.*
…there are remaining funds in the account?
If you determine assets in an account will not be used by the beneficiary for qualified education expenses, you have options!
- Stay invested.
- Change the beneficiary to an eligible family member.
- Roll the funds into the beneficiary’s Roth IRA.
- Withdraw money from the account for noneducational purposes.**
As always, consult your financial, tax or other advisor to learn more and how this would apply to your specific situation.
Upromise Sweepstakes
Upromise® is hosting a year-long sweepstakes featuring 35 monthly winners, one quarterly winner and one $20,000 grand-prize winner. Get automatic entries by:
- Linking Upromise account to 529 account: 10 entries
- Linking Upromise account to checking, savings or student loan account: 5 entries
- Upromise Cash Back Rewards: Earn 1 entry for every $0.01 cash-back earned
Visit Upromise.com to learn more and read the Official Rules.
Join ISave 529 at the Fair – Where Big Dreams Meet Smart Savings
We’re packing our bags for one of Iowa’s biggest traditions – the Iowa State Fair! Swing by our booth in the Varied Industries Building to register for an account contribution giveaway and grab some ISave 529 swag.
Our education savings experts will also be on hand to answer questions, share tips and help you understand how ISave 529 can support your family’s future. Whether you’re just starting to explore education savings or looking to fine-tune your plan, we’re happy to help you make sense of your options.
*The earnings portion of the withdrawal is not subject to the Federal Federal 10% Penalty and may be subject to recapture for Iowa state income tax purposes and for all other purposes is considered a nonqualified withdrawal.
** The earnings portion of the withdrawal is considered income and is subject to applicable federal and state income tax as well as a 10% federal penalty and may be subject to recapture for Iowa state income purposes.
Upromise is a registered service mark of Upromise, LLC.
