This bill amends South Dakota's existing law regarding higher education savings plans by updating the reference to the Internal Revenue Code to reflect current federal law as of January 1, 2026. Specifically, it modifies the definition of "Internal Revenue Code" in section 13-63-1 to ensure that the state's regulations align with the latest federal guidelines governing higher education savings accounts.

In addition to the update to the Internal Revenue Code reference, the bill maintains the existing definitions and terms related to higher education savings plans, such as "Account," "Account owner," "Designated beneficiary," and "Qualified higher education expenses." By ensuring that state law is consistent with federal law, the bill aims to facilitate the administration of these savings plans and provide clarity for account owners and contributors.

Statutes affected:
Introduced, 01/06/2026: 13-63-1
Enrolled, 01/29/2026: 13-63-1