Tax considerations.

; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; courier new tur ; arial (vietnamese) ; courier new (arabic) ; times new roman ce ; tahoma (vietnamese) ; arial (hebrew) ; times new roman cyr ; courier new greek ; symbol ; tahoma (hebrew) ; arial ; arial baltic ; arial tur ; times new roman (arabic) ; courier new ; imperial bt ; tahoma ce ; wingdings ; tahoma cyr ; times new roman tur ; courier new ce ; tahoma ; courier new (hebrew) ; arial (arabic) ; courier new baltic ; courier new cyr ; times new roman ; tahoma baltic ; tahoma (arabic) ; arial ce ; courier new (vietnamese) ; tahoma (thai) ; times new roman greek ; tahoma greek ; tahoma tur ; times new roman (hebrew) ; times new roman baltic ; times new roman (vietnamese) ; arial greek ; arial cyr ; \* .;
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 ?; ; ; Normal ; heading 1 ; heading 2 ; heading 3 ; heading 4 ; heading 5 ; heading 6 ; heading 7 ; heading 8 ; heading 9 ; Balloon Text ; Block Text ; Body Text ; Body Text 2 ; Body Text 3 ; Body Text First Indent ; Body Text First Indent 2 ; Body Text Indent 2 ; Body Text Indent 3 ; caption ; Closing ; annotation text ; annotation subject ; Date ; Document Map ; E-mail Signature ; endnote text ; envelope address ; envelope return ; footer ; footnote text ; header ; HTML Address ; HTML Preformatted ; index 1 ; index 2 ; index 3 ; index 4 ; index 5 ; index 6 ; index 7 ; index 8 ; index 9 ; index heading ; List ; List 2 ; List 3 ; List 4 ; List 5 ; List Bullet ; List Bullet 2 ; List Bullet 3 ; List Bullet 4 ; List Bullet 5 ; List Continue ; List Continue 2 ; List Continue 3 ; List Continue 4 ; List Continue 5 ; List Number ; List Number 2 ; List Number 3 ; List Number 4 ; List Number 5 ; macro ; Message Header ; Normal (Web) ; Normal Indent ; Note Heading ; Plain Text ; Salutation ; Signature ; Subtitle ; table of authorities ; table of figures ; Title ; toa heading ; toc 1 ; toc 2 ; toc 3 ; toc 4 ; toc 5 ; toc 6 ; toc 7 ; toc 8 ; toc 9 ; \~\~ \~\~ \~\~ \~\~ \~\~ 12D.9 \~\~ Tax considerations. \~\~ 1. \~\~ 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 . The Iowa educational savings plan trust meets the requirements of section 529(b), of the Internal Revenue Code , as follows: \~\~ a. \~\~ Pursuant to section 12D.3, subsection 1 , a participant may make contributions to an account which is established for the purpose of meeting the qualified education expenses of the designated beneficiary of the account. \~\~ b. \~\~ Pursuant to section 12D.3, subsection 1 , a maximum contribution level is established. \~\~ c. \~\~ Pursuant to section 12D.4, subsection 1 , paragraph “b” , a separate account is established for each beneficiary. \~\~ d. \~\~ Pursuant to section 12D.4, subsection 1 , paragraph “c” , contributions may only be made in the form of cash. \~\~ e. \~\~ Pursuant to section 12D.4, subsection 1 , paragraph “d” , a participant or beneficiary shall not provide investment direction regarding program contributions or earnings held by the trust. \~\~ f. \~\~ Pursuant to section 12D.6, subsection 6 , a participant shall not pledge any interest in the trust as security for a loan. \~\~ 2. \~\~ State income tax treatment of the Iowa educational savings plan trust shall be as provided in section 422.7, subsections 11, 22, and 23 . \~\~ 3. \~\~ For a death occurring before January 1, 2025, state inheritance tax treatment of interests in Iowa educational savings plans shall be as provided in section 450.4, subsection 8 . This subsection shall apply to all Iowa educational savings plans existing on or after July 1, 1998. 98 Acts, ch 1172, §9 ; 99 Acts, ch 122, §9, 10 ; 2003 Acts, ch 142, §2, 11 ; 2004 Acts, ch 1079, §13, 14, 17 ; 2005 Acts, ch 179, §107 ; 2008 Acts, ch 1164, §1 ; 2018 Acts, ch 1161, §99, 133, 134, 143, 147, 148 ; 2021 Acts, ch 177, §1 ; 2025 Acts, ch 148, §24, 53, 54 2018 amendment to subsection 2 is effective January 1, 2023, and applies to tax years beginning on or after that date; 2018 Acts, ch 1161, §133, 134 ; 2021 Acts, ch 177, §1 2025 amendment to subsection 3 applies retroactively to January 1, 2025, to the estates of decedents dying on or after January 1, 2025; 2025 Acts, ch 148, §54 Subsection 3 amended