Iowa State Treasurer Michael Fitzgerald yesterday announced the selection of the Principal Financial Group to manage and administer the Hawkeye State’s new 529 college savings plan, which will be distributed to individuals through the workplace. The Principal College Savings Plan is the first plan in the nation developed to be sold exclusively through employers. The new workplace plan will be offered through Iowa-based employers.
Des Moines, Iowa-based Principal will provide investment management, customer service and marketing/distribution for the new workplace distributed savings plan. Specific details about the plan and investment options will be announced in October.
The Principal currently provides retirement plan services to nearly 45,000 employers representing almost three million employees throughout the US, including 1,500 employers and nearly 200,000 retirement plan participants in Iowa.
Fitzgerald noted that “The new workplace plan complements College Savings Iowa, which is direct-sold to the investor, and offers an additional opportunity for families to save for college.”
Fitzgerald noted that College Savings Iowa – the first, direct-sold 529 plan introduced in Iowa – is still available by contacting the state or the program manager at www.collegesavingsiowa.com , or by calling 888-672-9116.