Iowa Administrative Code › Agency 781 - Treasurer of State › Chapter 20 - Iowa Able Savings Plan Trust › Rule 781-20.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
In addition to the terms defined in Iowa Code section 121.1, the following
										terms apply to this chapter:
"Account"
means an account in the plan opened by the account
										owner or authorized individual on behalf of the account owner to receive contributions and to provide funds
										for qualified disability expenses.
"Account balance"
means the fair market value of an
										account.
"Account balance limit"
means the amount set as such by the
										plan as set forth in the plan addendum. When the fair market value of an account reaches the account balance
										limit, no additional contributions will be accepted by the plan. Assets in an account can continue to accrue
										earnings beyond the account balance limit.
"Account owner"
means the account owner as defined in Iowa
										Code section 121.1. An account owner must be an eligible individual. References herein to an account owner
										include an authorized individual acting on behalf of an account owner.
"Annual contribution limit"
means the annual limit on
										contributions from all sources to an account in a qualified ABLE program under Section 529A.
"Authorized individual"
means a person or entity authorized
										to act on the account owner's behalf with respect to the account in accordance with these rules and Section
										529A. The authorized individual may neither have nor acquire any beneficial interest in the account during
										the account owner's lifetime and must administer the account for the benefit of the account owner.
"Beneficiary"
or
"designated beneficiary"
means the eligible individual who is the owner of the account.
"Contractor"
means any party retained by the plan
										administrator to assist in the day-to-day operations of the plan, including record-keeping, investment
										advisory and administrative services. The plan administrator may delegate any responsibilities with respect
										to day-to-day operations of the plan to one or more contractors.
"Contribution"
means an amount contributed to an account in
										accordance with the Internal Revenue Code, these rules and the plan disclosure documents.
"Eligible individual"
means an eligible individual as defined
										in Section 529A.
"Federal penalty tax"
means the additional federal tax
										imposed on the earnings portion of certain nonqualified withdrawals.
"Fund"
means the underlying investments that are mutual
										funds, exchange-traded funds, bank products and any other investments in which assets of the plan are
										invested through the investment options.
"IAble"
means the name and logo registered under Iowa law to
										represent the Iowa ABLE savings plan trust.
"Internal Revenue Code"
means the Internal Revenue Code of
										1986, as amended, and regulations promulgated or proposed thereunder.
"Investment options"
means the investment choices offered by
										the plan. Account owners can choose to invest in any number of investment options.
"IRS"
means the Internal Revenue Service.
"Member of the family"
means a sibling of the eligible
										individual, whether by blood or by adoption, including a brother, sister, stepbrother, stepsister,
										half-brother, and half-sister.
"Nonqualified withdrawal"
means any withdrawal that does not
										meet the requirements of being a qualified withdrawal or a rollover. Expenses will not be qualified
										disability expenses if they are incurred at a time when an account owner is not an eligible
										individual.
"NYSE"
means the New York Stock Exchange, Inc.
"Participation agreement"
means the agreement between the
										account owner and the plan that governs the account owner's use of the plan.
"Plan"
means the Iowa ABLE savings plan trust.
"Plan addendum"
means the plan-specific disclosure document
										which contains substantive disclosure of the terms and conditions of an investment in the plan. The plan
										addendum is intended to be read with the plan disclosure statement.
"Plan administrator"
means the treasurer of state as trustee
										and administrator of the plan.
"Plan disclosure documents"
means the plan disclosure
										statement and the plan addendum applicable to the plan, including any supplements or amendments
										thereto.
"Plan disclosure statement"
means the document adopted by the
										plan administrator which is intended to provide a description of the program and disclosure of the terms and
										conditions of an investment in the plan, including any supplements thereto distributed from time to
										time.
"Qualified disability expenses"
means qualified disability
										expenses as defined in Section 529A.
"Qualified withdrawal"
means any withdrawal from an account
										used to pay for qualified disability expenses of the account owner.
"Resident"
means someone living in one location with the
										intent to remain there permanently or for a definite, indefinite or indeterminable length of time.
"Rollover"
means a contribution to an account of an account
										owner (or of an eligible individual who is a member of the family of the account owner) of all or a portion
										of an amount withdrawn from the account owner's account, provided the contribution is made within 60 days of
										the date of the withdrawal and, in the case of a rollover to the account owner's ABLE account, no rollover
										has been made to an ABLE account of the account owner within the prior 12 months.
"Secretary"
means the Secretary of the Treasury of the United
										States.
"Section 529A"
means Section 529A of the Internal Revenue
										Code and regulations promulgated or proposed thereunder.
"Social Security Act"
means the Social Security Act of 1935,
										as amended.
"State"
means the state of Iowa.
"Treasurer"
means the treasurer of the state of Iowa.
"Underlying investments"
means the mutual funds,
										exchange-traded funds, bank products and any other investments in which assets of the plan are invested
										through the investment options.