Senate File 2100 - Introduced SENATE FILE 2100 BY PETERSEN A BILL FOR An Act providing for participation in the Iowa educational 1 savings plan trust by nonprofit organizations. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5838XS (2) 86 mm/sc
S.F. 2100 Section 1. Section 12D.1, subsection 2, paragraph i, Code 1 2016, is amended to read as follows: 2 i. “Participant” means an individual, individual’s legal 3 representative, trust, or estate , or an organization described 4 in section 501(c)(3) of the Internal Revenue Code and exempt 5 from taxation under section 501(a) of the Internal Revenue 6 Code, that has entered into a participation agreement under 7 this chapter for the advance payment of higher education costs 8 on behalf of a beneficiary. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill adds tax-exempt, Internal Revenue Code §501(c)(3) 13 nonprofit organizations as entities eligible to participate 14 in the Iowa educational savings plan trust, also known as the 15 Iowa college savings 529 plan. These organizations will now be 16 eligible to open accounts for individual beneficiaries and make 17 contributions for the future payment of higher education costs 18 on behalf of those beneficiaries. 19 -1- LSB 5838XS (2) 86 mm/sc 1/ 1