Bill Text: IA HF2537 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the treasurer of state's duties, including Iowa educational savings plan trust and Iowa ABLE savings plan trust requirements and disposition of unclaimed property, and including retroactive applicability provisions.(Formerly HSB 626; See HF 2667.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-03-26 - Withdrawn. H.J. 681. [HF2537 Detail]
Download: Iowa-2023-HF2537-Introduced.html
House
File
2537
-
Introduced
HOUSE
FILE
2537
BY
COMMITTEE
ON
STATE
GOVERNMENT
(SUCCESSOR
TO
HSB
626)
A
BILL
FOR
An
Act
relating
to
the
treasurer
of
state’s
duties,
including
1
Iowa
educational
savings
plan
trust
and
Iowa
ABLE
savings
2
plan
trust
requirements
and
disposition
of
unclaimed
3
property,
and
including
retroactive
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
5342HV
(2)
90
cm/jh
H.F.
2537
DIVISION
I
1
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST
2
Section
1.
Section
12D.3,
subsection
1,
Code
2024,
is
3
amended
to
read
as
follows:
4
1.
Each
participation
agreement
may
require
a
participant
5
to
agree
to
invest
a
specific
amount
of
money
in
the
trust
6
for
a
specific
period
of
time
for
the
benefit
of
a
specific
7
beneficiary.
A
participant
shall
not
be
required
to
make
an
8
annual
contribution
on
behalf
of
a
beneficiary.
The
maximum
9
contribution
that
may
be
deducted
for
Iowa
income
tax
purposes
10
shall
not
exceed
two
five
thousand
five
hundred
dollars
per
11
beneficiary
per
year
adjusted
annually
to
reflect
increases
12
in
the
consumer
higher
education
price
index
,
rounded
up
to
13
the
nearest
fifty
or
hundred
dollars
.
The
treasurer
of
state
14
shall
set
an
account
balance
limit
to
maintain
compliance
with
15
section
529
of
the
Internal
Revenue
Code.
A
contribution
shall
16
not
be
permitted
to
the
extent
it
causes
the
aggregate
balance
17
of
all
accounts
established
for
the
same
beneficiary
under
the
18
trust
to
exceed
the
applicable
account
balance
limit.
19
Sec.
2.
Section
422.7,
subsection
22,
paragraph
c,
20
subparagraph
(1),
Code
2024,
is
amended
by
adding
the
following
21
new
subparagraph
division:
22
NEW
SUBPARAGRAPH
DIVISION
.
(g)
A
direct
trustee-to-trustee
23
transfer
to
a
Roth
individual
retirement
account
in
accordance
24
with
the
rules
under
section
529(c)(3)(E)
of
the
Internal
25
Revenue
Code.
26
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
division
of
this
27
Act
applies
retroactively
to
January
1,
2024,
for
tax
years
28
beginning
on
or
after
that
date.
29
DIVISION
II
30
DISPOSITION
OF
UNCLAIMED
PROPERTY
31
Sec.
4.
Section
556.12,
subsection
1,
Code
2024,
is
amended
32
to
read
as
follows:
33
1.
If
a
report
has
been
filed
with
the
treasurer
of
state,
34
or
property
has
been
paid
or
delivered
to
the
treasurer
of
35
-1-
LSB
5342HV
(2)
90
cm/jh
1/
4
H.F.
2537
state,
for
the
fiscal
year
ending
on
June
30
or,
in
the
case
of
1
unclaimed
demutualization
proceeds,
for
the
preceding
calendar
2
year
as
required
by
section
556.11
,
the
treasurer
of
state
3
shall
provide
may
do
any
of
the
following:
4
a.
Provide
for
the
publication
annually
of
at
least
5
one
notice
not
later
than
the
following
November
30.
Each
6
notice
shall
may
be
published
at
least
once
each
week
for
two
7
successive
weeks
in
an
English
language
newspaper
of
general
8
circulation
in
the
county
in
this
state
in
which
is
located
the
9
last
known
address
of
any
person
to
be
named
in
the
notice.
10
If
an
address
is
not
listed
or
if
the
address
is
outside
this
11
state,
the
notice
shall
may
be
published
in
the
county
in
which
12
the
holder
of
the
abandoned
property
has
its
principal
place
13
of
business
within
this
state.
14
b.
Publish
information
to
make
the
public
aware
of
15
the
existence
of
unclaimed
property
and
the
treasurer
of
16
state’s
unclaimed
property
program
in
a
newspaper
in
general
17
circulation
in
the
state.
18
Sec.
5.
Section
556.19,
Code
2024,
is
amended
to
read
as
19
follows:
20
556.19
Claim
Procedure
for
abandoned
property
paid
or
21
delivered.
22
1.
Any
person
claiming
an
interest
in
any
property
delivered
23
to
the
state
under
this
chapter
may
file
a
claim
thereto
or
to
24
the
proceeds
from
the
sale
thereof
on
the
form
prescribed
by
25
the
state
treasurer.
26
2.
Notwithstanding
subsection
1,
the
treasurer
of
state
27
may
waive
the
requirement
of
a
claim
form
and
pay
or
deliver
28
property
directly
to
a
person
if
the
person
receiving
the
29
property
or
payment
is
shown
to
be
the
apparent
owner
included
30
on
a
report
filed
under
section
556.11
and
the
treasurer
of
31
state
reasonably
believes
the
person
is
entitled
to
receive
32
the
property
or
payment.
The
treasurer
of
state
may
use
state
33
tax
information
to
assist
in
identifying
the
owner
of
property
34
that
has
been
abandoned
as
provided
under
this
chapter
or
in
35
-2-
LSB
5342HV
(2)
90
cm/jh
2/
4
H.F.
2537
verifying
a
claim
filed
under
this
chapter.
1
EXPLANATION
2
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
3
the
explanation’s
substance
by
the
members
of
the
general
assembly.
4
This
bill
relates
the
treasurer
of
state’s
duties,
5
including
Iowa
educational
savings
plan
trust
requirements
and
6
disposition
of
unclaimed
property.
7
DIVISION
I
——
IOWA
EDUCATIONAL
SAVINGS
PLAN
TRUST.
The
8
bill
increases
the
maximum
contribution
to
a
beneficiary’s
9
529
account
that
may
be
deducted
for
income
tax
purposes
to
10
$5,500
per
year.
The
maximum
deduction
for
tax
year
2023
is
11
$3,785.
Additionally,
under
current
law
the
maximum
deduction
12
is
adjusted
annually
to
reflect
increases
in
the
consumer
price
13
index.
Under
the
bill,
such
adjustments
will
instead
reflect
14
increases
in
the
higher
education
price
index
rounded
up
to
15
the
nearest
$50
or
$100.
By
operation
of
law,
the
bill
also
16
increases
the
maximum
deduction
amount
available
in
an
Iowa
17
ABLE
savings
plan
trust
to
the
same
amount
for
the
current
and
18
future
years.
19
The
bill
also
provides
that
a
transfer
made
in
a
direct
20
trustee-to-trustee
transfer
from
a
529
account
to
a
Roth
21
individual
retirement
account
in
accordance
with
the
rules
22
under
the
federal
Internal
Revenue
Code
section
529(c)(3)(E)
23
are
exempt
from
state
individual
income
taxation.
24
The
division
of
the
bill
applies
retroactively
to
January
1,
25
2024,
for
the
tax
year
beginning
on
or
after
that
date.
26
DIVISION
II
——
DISPOSITION
OF
UNCLAIMED
PROPERTY.
The
bill
27
removes
the
requirement
for
publication
of
public
notice
by
the
28
treasurer
for
abandoned
property,
instead
making
it
optional
29
and
at
the
discretion
of
the
treasurer.
30
The
bill
provides
that
the
treasurer
may
pay
or
deliver
31
property
directly
to
a
person
if
the
person
receiving
the
32
property
or
payment
is
shown
to
be
the
apparent
owner
included
33
on
a
report
for
abandoned
property
and
the
treasurer
reasonably
34
believes
the
person
is
entitled
to
receive
the
property
or
35
-3-
LSB
5342HV
(2)
90
cm/jh
3/
4
