Iowa educational savings plan trust definition
Examples of Iowa educational savings plan trust in a sentence
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.
EXAMPLE: Because a beneficiary of a certain participant died in the year 2000, this participant in the Iowa educational savings plan trust canceled the participant agreement for the beneficiary with the trust and received a refund of $4,200 of funds in the beneficiary’s account.
In October 1998, the person became a participant in the Iowa educational savings plan trust by making $2,000 contributions to the trust on behalf of each of the ten grandchildren.
Deduction from net income for contributions made to the Iowa educational savings plan trust on behalf of beneficiaries.
The Iowa educational savings plan trust includes the college savings Iowa plan and the Iowa advisor 529 plan.
See 781—Chapter 16.40.53(1) Deduction from net income for contributions made to the Iowa educational savings plan trust on behalf of beneficiaries.
The Iowa educational savings plan trust was created so that individuals and certain other qualified participants can contribute funds on behalf of beneficiaries in accounts administered by the treasurer of state to cover future higher education costs qualified education expenses of the beneficiaries.
To the extent that interest or other earnings accrue on a beneficiary’s account in the Iowa educational savings plan trust, the interest or other earnings are excluded for purposes of computing net income on the Iowa individual income tax return of the participant or the return of the beneficiary.40.53(3) Including on the Iowa individual return amounts refunded to the participant from the Iowa educational savings plan trust that had previously been deducted.
When the participant files the 1998 Iowa individual income tax return, the participant can claim a deduction on the return for the $20,000 contributed to the Iowa educational savings plan trust on behalf of the individual’s ten grandchildren.40.53(2) Exclusion of interest and earnings on beneficiary accounts in the Iowa educational savings plan trust.
ARC 7406BTREASURER OF STATE[781]Adopted and FiledPursuant to the authority of Iowa Code section 12D.2, the Treasurer of State hereby amends Chapter 16, “Iowa Educational Savings Plan Trust,” Iowa Administrative Code.The rules in Chapter 16 provide for the administration and operation of the Iowa educational savings plan trust.