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12d-3
12D.3 PARTICIPATION AGREEMENTS FOR TRUST.
The trust may enter into participation agreements with
participants on behalf of beneficiaries pursuant to the following
terms and agreements:
1. a. Each participation agreement may require a participant
to agree to invest a specific amount of money in the trust for a
specific period of time for the benefit of a specific beneficiary. A
participant shall not be required to make an annual contribution on
behalf of a beneficiary. The maximum contribution that may be
deducted for Iowa income tax purposes shall not exceed two thousand
dollars per beneficiary per year adjusted annually to reflect
increases in the consumer price index. The treasurer of state shall
set an account balance limit to maintain compliance with section 529
of the Internal Revenue Code. A contribution shall not be permitted
to the extent it causes the aggregate balance of all accounts
established for the same beneficiary to exceed the applicable account
balance limit.
b. Participation agreements may be amended to provide for
adjusted levels of payments based upon changed circumstances or
changes in educational plans.
2. The execution of a participation agreement by the trust shall
not guarantee in any way that higher education costs will be equal to
projections and estimates provided by the trust or that the
beneficiary named in any participation agreement will attain any of
the following:
a. Be admitted to an institution of higher education.
b. If admitted, be determined a resident for tuition purposes
by the institution of higher education.
c. Be allowed to continue attendance at the institution of
higher education following admission.
d. Graduate from the institution of higher education.
3. a. A beneficiary under a participation agreement may be
changed as permitted under rules adopted by the treasurer of state
upon written request of the participant as long as the substitute
beneficiary is eligible for participation.
b. Participation agreements may otherwise be freely amended
throughout their terms in order to enable participants to increase or
decrease the level of participation, change the designation of
beneficiaries, and carry out similar matters as authorized by rule.
4. Each participation agreement shall provide that the
participation agreement may be canceled upon the terms and
conditions, and upon payment of applicable fees and costs set forth
and contained in the rules adopted by the treasurer of state. Section History: Recent Form
98 Acts, ch 1172, §3; 99 Acts, ch 122, §2--4, 10; 2000 Acts, ch
1163, §2--4, 6; 2004 Acts, ch 1079, §7, 8, 17
Referred to in §12D.9, 422.7
