Text: HF02549 Text: HF02551 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2550 1 2 AN ACT 1 3 RELATING TO THE IOWA EDUCATIONAL SAVINGS PLAN TRUST AND 1 4 PROVIDING AN EFFECTIVE DATE. 1 5 1 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 7 1 8 Section 1. Section 12D.1, Code 1999, is amended by adding 1 9 the following new subsection: 1 10 NEW SUBSECTION. 0A. "Account balance limit" means the 1 11 maximum allowable aggregate balance of accounts established 1 12 for the same beneficiary. Account earnings, if any, are 1 13 included in the account balance limit. 1 14 Sec. 2. Section 12D.3, subsection 1, paragraph a, Code 1 15 Supplement 1999, is amended to read as follows: 1 16 a. Each participation agreement may require a participant 1 17 to agree to invest a specific amount of money in the trust for 1 18 a specific period of time for the benefit of a specific 1 19 beneficiary. A participant shall not be required to make an 1 20 annual contribution on behalf of a beneficiary. The minimum 1 21 contribution per beneficiary per year, in a year in which a 1 22 participant is making a contribution, shall be fifty dollars,1 23and the. The maximum contribution that may be deducted for 1 24 Iowa income tax purposes shall not exceed two thousand dollars 1 25 per beneficiary per year adjusted annually to reflect 1 26 increases in the consumer price index.However, theThe 1 27 treasurer of statemayshall seta maximum, as necessary,an 1 28 account balance limit to maintain compliance with section 529 1 29 of the Internal Revenue Code. A contribution shall not be 1 30 permitted to the extent it causes the aggregate balance of all 1 31 accounts established for the same beneficiary to exceed the 1 32 applicable account balance limit. 1 33 Sec. 3. Section 12D.3, subsection 2, Code Supplement 1999, 1 34 is amended to read as follows: 1 35 2. Beneficiaries designated in participation agreements 2 1 may be designated from date of birth up to, but not including, 2 2 their eighteenth birthday. A substitute beneficiary may be 2 3 older than age eighteen provided that the substitute 2 4 beneficiary is not older than the original beneficiarywhen2 5the substitution is made. 2 6 Sec. 4. Section 12D.3, subsection 5, paragraph a, Code 2 7 Supplement 1999, is amended to read as follows: 2 8 a. A beneficiary under a participation agreement may be 2 9 changed as permitted under rules adopted by the treasurer of 2 10 state upon written request of the participantprior to the2 11date of admission of the beneficiary to an institution of2 12higher educationas long as the substitute beneficiary is 2 13 eligible for participation. 2 14 Sec. 5. Section 422.7, subsection 32, paragraph a, Code 2 15 1999, is amended by striking the paragraph and inserting in 2 16 lieu thereof the following: 2 17 a. Subtract the maximum contribution that may be deducted 2 18 for Iowa income tax purposes as a participant in the Iowa 2 19 educational savings plan trust pursuant to section 12D.3, 2 20 subsection 1, paragraph "a". 2 21 Sec. 6. EFFECTIVE DATE. This Act, being deemed of 2 22 immediate importance, takes effect upon enactment. 2 23 2 24 2 25 2 26 BRENT SIEGRIST 2 27 Speaker of the House 2 28 2 29 2 30 2 31 MARY E. KRAMER 2 32 President of the Senate 2 33 2 34 I hereby certify that this bill originated in the House and 2 35 is known as House File 2550, Seventy-eighth General Assembly. 3 1 3 2 3 3 3 4 ELIZABETH ISAACSON 3 5 Chief Clerk of the House 3 6 Approved , 2000 3 7 3 8 3 9 3 10 THOMAS J. VILSACK 3 11 Governor
Text: HF02549 Text: HF02551 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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