12D.9 TAX CONSIDERATIONS.
1. For federal income tax purposes, the Iowa educational savings
plan trust shall be considered a qualified state tuition program
exempt from taxation pursuant to section 529 of the Internal Revenue
Code. The Iowa educational savings plan trust meets the requirements
of section 529(b), of the Internal Revenue Code, as follows:
a. Pursuant to section 12D.3, subsection 1, paragraph
"a", a participant may make contributions to an account which is
established for the purpose of meeting the qualified higher education
expenses of the designated beneficiary of the account.
b. Pursuant to section 12D.3, subsection 1, a maximum
contribution level is established.
c. Pursuant to section 12D.4, subsection 1, paragraph
"b", a separate account is established for each beneficiary.
d. Pursuant to section 12D.4, subsection 1, paragraph
"c", contributions may only be made in the form of cash.
e. Pursuant to section 12D.4, subsection 1, paragraph
"d", a participant or beneficiary shall not provide investment
direction regarding program contributions or earnings held by the
trust.
f. Pursuant to section 12D.6, subsection 6, a participant
shall not pledge any interest in the trust as security for a loan.
2. State income tax treatment of the Iowa educational savings
plan trust shall be as provided in section 422.7, subsections 32 and
33.
3. State inheritance tax treatment of interests in Iowa
educational savings plans shall be as provided in section 450.4,
subsection 10. This subsection shall apply to all Iowa educational
savings plans existing on or after July 1, 1998.
12D.9 TAX CONSIDERATIONS.
1. For federal income tax purposes, the Iowa educational savings
plan trust shall be considered a qualified state tuition program
exempt from taxation pursuant to section 529 of the Internal Revenue
Code. The Iowa educational savings plan trust meets the requirements
of section 529(b), of the Internal Revenue Code, as follows:
a. Pursuant to section 12D.3, subsection 1, paragraph
"a", a participant may make contributions to an account which is
established for the purpose of meeting the qualified higher education
expenses of the designated beneficiary of the account.
b. Pursuant to section 12D.3, subsection 1, a maximum
contribution level is established.
c. Pursuant to section 12D.4, subsection 1, paragraph
"b", a separate account is established for each beneficiary.
d. Pursuant to section 12D.4, subsection 1, paragraph
"c", contributions may only be made in the form of cash.
e. Pursuant to section 12D.4, subsection 1, paragraph
"d", a participant or beneficiary shall not provide investment
direction regarding program contributions or earnings held by the
trust.
f. Pursuant to section 12D.6, subsection 6, a participant
shall not pledge any interest in the trust as security for a loan.
2. State income tax treatment of the Iowa educational savings
plan trust shall be as provided in section 422.7, subsections 32 and
33.
3. State inheritance tax treatment of interests in Iowa
educational savings plans shall be as provided in section 450.4,
subsection 10. This subsection shall apply to all Iowa educational
savings plans existing on or after July 1, 1998.
12D.9 TAX CONSIDERATIONS.
1. For federal income tax purposes, the Iowa educational savings
plan trust shall be considered a qualified state tuition program
exempt from taxation pursuant to section 529 of the Internal Revenue
Code. The Iowa educational savings plan trust meets the requirements
of section 529(b), of the Internal Revenue Code, as follows:
a. Pursuant to section 12D.3, subsection 1, paragraph
"a", a participant may make contributions to an account which is
established for the purpose of meeting the qualified higher education
expenses of the designated beneficiary of the account.
b. Pursuant to section 12D.3, subsection 1, a maximum
contribution level is established.
c. Pursuant to section 12D.4, subsection 1, paragraph
"b", a separate account is established for each beneficiary.
d. Pursuant to section 12D.4, subsection 1, paragraph
"c", contributions may only be made in the form of cash.
e. Pursuant to section 12D.4, subsection 1, paragraph
"d", a participant or beneficiary shall not provide investment
direction regarding program contributions or earnings held by the
trust.
f. Pursuant to section 12D.6, subsection 6, a participant
shall not pledge any interest in the trust as security for a loan.
2. State income tax treatment of the Iowa educational savings
plan trust shall be as provided in section 422.7, subsections 32 and
33.
3. State inheritance tax treatment of interests in Iowa
educational savings plans shall be as provided in section 450.4,
subsection 10. This subsection shall apply to all Iowa educational
savings plans existing on or after July 1, 1998.
