The bill amends South Dakota's existing law regarding higher education savings plans by updating the reference to the Internal Revenue Code. Specifically, it establishes that the term "Internal Revenue Code" will refer to the United States Internal Revenue Code as of January 1, 2025. This change is intended to ensure that the state's higher education savings program remains aligned with the most current federal tax regulations, which can impact contributions, qualified expenses, and other aspects of the savings plans.

In addition to the updated reference, the bill maintains the definitions and terms related to the higher education savings program, including "account," "account owner," "contribution," and "qualified higher education expenses," among others. By making this amendment, the legislation aims to provide clarity and consistency in the administration of higher education savings accounts, ensuring that they comply with the latest federal guidelines and support the financial planning of families saving for education.

Statutes affected:
Introduced, 12/27/2024: 13-63-1
Enrolled, 03/03/2025: 13-63-1