Iowa Code 12D.4 – Program and administrative funds — investment and payments
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1. a. The treasurer of state shall segregate moneys received by the trust into two funds: the program fund and the administrative fund.
b. All moneys paid by participants in connection with participation agreements shall be deposited as received into separate accounts within the program fund.
c. Contributions to the trust made by participants may only be made in the form of cash.
d. A participant or beneficiary may, directly or indirectly, direct the investment of any contributions to the trust or any earnings thereon no more than two times in a calendar year.
e. The amount of cash distributions from the trust and all other qualified state tuition programs under section 529 of the Internal Revenue Code to a beneficiary during any taxable year shall, in the aggregate, include no more than ten thousand dollars in expenses for tuition in connection with enrollment at an elementary or secondary public, private, or religious school incurred during the taxable year.
Terms Used In Iowa Code 12D.4
- Administrative fund: means the administrative fund established under section 12D. See Iowa Code 12D.1
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: means the individual designated by a participation agreement to benefit from advance payments of qualified education expenses on behalf of the beneficiary. See Iowa Code 12D.1
- Participant: means an individual, individual's legal representative, trust, estate, or an organization described in section 501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of the Internal Revenue Code, that has entered into a participation agreement under this chapter for the advance payment of qualified education expenses on behalf of a beneficiary. See Iowa Code 12D.1
- Program fund: means the program fund established under section 12D. See Iowa Code 12D.1
- Qualified educational institution: means an institution of higher education, or any elementary or secondary public, private, or religious school described in section 529(c)(7) of the Internal Revenue Code. See Iowa Code 12D.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- trust: means the trust created under section 12D. See Iowa Code 12D.1
- Tuition: means the quarter, semester, or annual charges imposed to attend a qualified educational institution and required as a condition of enrollment or attendance. See Iowa Code 12D.1
- year: means twelve consecutive months. See Iowa Code 4.1
2. Moneys accrued by participants in the program fund of the trust may be used for payments to any qualified educational institution. Payments can be made to the qualified educational institution, the participant, or the beneficiary.