Iowa has awarded its latest 529 mandate to a hometown provider. The State Treasurer's office confirmed on Wednesday that it selected Principal Financial Group of Des Moines, Iowa for the contract. The decision to go with a provider domiciled in the state follows a pattern established throughout the nation.
The mandate covered both investment management and administration for the new plan. Principal confirmed it has signed a letter of intent to provide the services.
"Retirement and college are two of the most significant savings goals facing Iowans today," said Michael L. Fitzgerald, state treasurer. "The Principal knows how to help citizens of this state do both, so they were a logical choice."
The Principal College Savings Plan will be distributed through solely through Iowa-based employers and is intended to leverage Principal's position in the 401(k) market. Principal administers more plans than any other 401(k) recordkeeper. Most of its business is in the small plan market. Fidelity Investments is the largest 401(k) recordkeeper by both plan assets recordkept and total participants.
Iowa offers a second 529 plan sold directly to individuals.
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