Iowa Administrative Code › Agency 781 - Treasurer of State › Chapter 16 - Iowa Educational Savings Plan Trust › Rule 781-16.2 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
In addition to the terms defined in Iowa Code section
						12D.1,
						the following terms apply to this chapter:
"Account"
means an account established and
						maintained under the Iowa educational savings plan trust for a
						beneficiary.
"Account balance"
means the fair market value
						of an account.
"Account balance limit"
means the amount
						determined periodically by the program administrator as necessary to provide
						for the qualified higher education expenses of a beneficiary in accordance with
						Section 529. The account balance limit shall apply to the total of all accounts
						in the plans for the benefit of a beneficiary.
"Account owner"
means the participant or other
						owner of an account.
"Adjusted maximum annual amount"
means the
						amount that a participant may annually contribute to an account for a
						beneficiary and deduct from Iowa income taxes pursuant to Iowa Code chapter
						422.
"Beneficiary"
means the individual designated
						as the beneficiary of an account.
"College savings Iowa"
means the name and logo
						registered under Iowa law to represent the direct-sold plan under the Iowa
						educational savings plan trust.
"Contractor"
means any party retained by the
						program administrator to assist in the day-to-day operations of a plan,
						including record-keeping, investment advisory and administrative services. The
						program administrator may delegate any responsibilities with respect to
						day-to-day operations of a 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
						applicable program description.
"Eligible educational institution"
means an
						eligible educational institution as defined in Section 529.
"Iowa advisor 529 plan"
means the name and
						logo registered to represent the advisor-sold plan under the Iowa educational
						savings plan trust.
"K-12 institution"
means any elementary or
						secondary public, private, or religious school.
"Member of the family"
means a member of the
						family as defined in Section 529, except that for a qualified rollover to a
						Section 529A ABLE account, "member of the family" shall mean as defined in
						Section 529A of the Internal Revenue Code.
"Nonqualified withdrawal"
means a withdrawal
						from an account that is not a qualified withdrawal or a qualified
						rollover.
"Participant"
means the owner of an
						account.
"Participation agreement"
means the form that
						the participant submits to the plan to identify the participant, beneficiary,
						plan, and other information that may be requested by the plan.
"Plan"
means either (1) college savings Iowa,
						(2) Iowa advisor 529 plan, or (3) any other college savings plan established by
						the program administrator under the Iowa educational savings plan trust.
"Program administrator"
means the treasurer of
						state.
"Program description"
means the description of
						each plan provided to participants setting forth information with respect to
						the plan.
"Qualified higher education expenses"
means
						qualified higher education expenses as defined in Section 529. Any reference to
						qualified higher education expenses includes a reference to expenses for
						tuition in connection with enrollment or attendance at an elementary or
						secondary public, private or religious school.
"Qualified rollover"
means a distribution of
						amounts from a plan which, within 60 days of such distribution, is
						transferred:
(1) to another qualified tuition program for the benefit of the
						same beneficiary, provided that it has been at least 12 months from the date of
						a previous transfer to a qualified tuition program for that beneficiary;
(2) to another qualified tuition program (or an account in
						another plan) for the benefit of a member of the family of the beneficiary;
						or
(3) to a Section 529A ABLE account for the beneficiary or
						member of the family of the beneficiary, subject to ABLE account contribution
						limits.
"Qualified withdrawal"
means a withdrawal from
						an account used to pay qualified higher education expenses.
"Section 529"
means Section 529 of the
						Internal Revenue Code.
"Successor participant"
means a successor to
						the ownership of an account designated as such in accordance with rule
						781-16.10(12D) and the applicable program description.