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Tax Advantages

The IAdvisor 529 Plan offer multiple tax incentives. These include state tax deductions, tax deferral of earnings, tax-free withdrawals for qualified higher education expenses, and generous estate and gift tax benefits.

Federal Tax Advantages

  • Earnings in your account 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 taxpayers1 who are participants

Estate and Gift Tax Benefits

  • 529 plans are a great way for grandparents and other family members to create an educational legacy for a child while reducing the value of their taxable estate
  • You may contribute as much as $18,000 per beneficiary each year ($36,000 if married, filing jointly) without incurring gift tax consequences
  • As an alternative, you can elect to contribute up to $90,000 in a single year ($180,000 if married, filing jointly) and treat it as if it was made over a five-year period2

State Tax Incentives for Iowa Residents

  • Contributions of up to $5,500 per beneficiary per Iowa taxpayer who is a participant are deductible from Iowa taxable income in 2024 (adjusted annually for inflation)3. For example, married Iowa participants who contribute to accounts on behalf of their two children can deduct up to $22,000 (4 x $5,500). Please note that for 2023 tax purposes, the deduction limit was $3,785.
  • 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.

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

2 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.

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

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. Voya Investment Management (Voya IM) provides investment management and administrative services for the IAdvisor 529 Plan. Shares in the program are distributed by Voya Investments Distributor, LLC, Member FINRA/SIPC. This web site is accompanied by a current program description for 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 state benefits such as financial aid, scholarship funds, and protection from creditors 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.

Voya Investment Management does not control or endorse and is not responsible for third-party Web sites to which this site links.

Voya Investment Management is not an underwriter for any underlying municipal securities

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 download a Program Description or request one by calling 800-774-5127. The Program Description should be read carefully before investing.

Voya Investments Distributor, LLC, the distributor of the Iowa advisor-sold 529 plans, is registered with the U.S. Securities and Exchange Commission and the Municipal Securities Rulemaking Board (“MSRB”). The website address for the Municipal Securities Rulemaking Board is www.msrb.org; The MSRB website includes an investor brochure which describes: (i) the protections that may be provided by the Municipal Securities Rulemaking Board rules; and (ii) how to file a complaint with an appropriate regulatory authority.

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

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