701—40.44 (422,541A) Individual development accounts. Individual development accounts are authorized for low-income taxpayers for tax years beginning on or after January 1, 1994. Additions to the accounts are described in the following subrule:
	 40.44(1) Exemption of additions to individual development accounts. The following additions to individual development accounts are exempt from the state income tax of the owners of the accounts to the extent the additions were subject to federal income tax:
	  a.   	 The amount of contributions made in the tax year to an account by persons and entities other than the owner of the account.
	  b.   	 The amount of any savings refund made in the tax year to an account as authorized for contributions made to the accounts by the owner of the account.
	  c.   	 Earnings on the account in the tax year or interest earned on the account.
	 40.44(2) Additions to net income for withdrawals from individual development accounts. Rescinded IAB 9/11/96, effective 10/16/96.
This rule is intended to implement Iowa Code sections 422.7, 541A.2 and 541A.3 as amended by 1996 Iowa Acts, Senate File 2324.