Iowa Administrative Code
Agency 781 - Treasurer of State
Chapter 16 - Iowa Educational Savings Plan Trust
Rule 781-16.2 - Definitions

In addition to the terms defined in Iowa Code section 12D.1, the following terms apply to this chapter:

"Account" means an account established and maintained under the Iowa educational savings plan trust for a beneficiary.

"Account balance" means the fair market value of an account.

"Account balance limit" means the amount determined periodically by the program administrator as necessary to provide for the qualified higher education expenses of a beneficiary in accordance with Section 529. The account balance limit shall apply to the total of all accounts in the plans for the benefit of a beneficiary.

"Account owner" means the participant or other owner of an account.

"Adjusted maximum annual amount" means the amount that a participant may annually contribute to an account for a beneficiary and deduct from Iowa income taxes pursuant to Iowa Code chapter 422.

"Beneficiary" means the individual designated as the beneficiary of an account.

"College savings Iowa" means the name and logo registered under Iowa law to represent the direct-sold plan under the Iowa educational savings plan trust.

"Contractor" means any party retained by the program administrator to assist in the day-to-day operations of a plan, including record-keeping, investment advisory and administrative services. The program administrator may delegate any responsibilities with respect to day-to-day operations of a plan to one or more contractors.

"Contribution" means an amount contributed to an account in accordance with the Internal Revenue Code, these rules and the applicable program description.

"Eligible educational institution" means an eligible educational institution as defined in Section 529.

"Iowa advisor 529 plan" means the name and logo registered to represent the advisor-sold plan under the Iowa educational savings plan trust.

"K-12 institution" means any elementary or secondary public, private, or religious school.

"Member of the family" means a member of the family as defined in Section 529, except that for a qualified rollover to a Section 529A ABLE account, "member of the family" shall mean as defined in Section 529A of the Internal Revenue Code.

"Nonqualified withdrawal" means a withdrawal from an account that is not a qualified withdrawal or a qualified rollover.

"Participant" means the owner of an account.

"Participation agreement" means the form that the participant submits to the plan to identify the participant, beneficiary, plan, and other information that may be requested by the plan.

"Plan" means either (1) college savings Iowa, (2) Iowa advisor 529 plan, or (3) any other college savings plan established by the program administrator under the Iowa educational savings plan trust.

"Program administrator" means the treasurer of state.

"Program description" means the description of each plan provided to participants setting forth information with respect to the plan.

"Qualified higher education expenses" means qualified higher education expenses as defined in Section 529. Any reference to qualified higher education expenses includes a reference to expenses for tuition in connection with enrollment or attendance at an elementary or secondary public, private or religious school.

"Qualified rollover" means a distribution of amounts from a plan which, within 60 days of such distribution, is transferred:

(1) to another qualified tuition program for the benefit of the same beneficiary, provided that it has been at least 12 months from the date of a previous transfer to a qualified tuition program for that beneficiary;

(2) to another qualified tuition program (or an account in another plan) for the benefit of a member of the family of the beneficiary; or

(3) to a Section 529A ABLE account for the beneficiary or member of the family of the beneficiary, subject to ABLE account contribution limits.

"Qualified withdrawal" means a withdrawal from an account used to pay qualified higher education expenses.

"Section 529" means Section 529 of the Internal Revenue Code.

"Successor participant" means a successor to the ownership of an account designated as such in accordance with rule 781-16.10(12D) and the applicable program description.