Indiana § 4-4-28-16 Account withdrawal; purposes; approval

Indiana Statutes

§ 4-4-28-16 — Account withdrawal; purposes; approval

Indiana·Art. 4 LIEUTENANT GOVERNOR·Ch. 28 Individual Development Accounts

(a)Money withdrawn from an individual's account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the money is used for at least one (1) of the following:

(1)To pay for costs (including tuition, laboratory costs, books, computer costs, and other costs) at an accredited postsecondary educational institution or a vocational school that is not a postsecondary educational institution for the individual or for a dependent of the individual.

(2)To pay for the costs (including tuition, laboratory costs, books, computer costs, and other costs) associated with an accredited or a licensed training program that may lead to employment for the individual or for a dependent of the individual.

(3)To purchase a primary residence located in Indiana for the individual or for a dependent of t

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(a) Money withdrawn from an individual's
account is not subject to taxation under IC 6-3-1 through IC 6-3-7 if the
money is used for at least one (1) of the following:
(1) To pay for costs (including tuition, laboratory costs, books,
computer costs, and other costs) at an accredited postsecondary
educational institution or a vocational school that is not a
postsecondary educational institution for the individual or for a
dependent of the individual.
(2) To pay for the costs (including tuition, laboratory costs, books,
computer costs, and other costs) associated with an accredited or
a licensed training program that may lead to employment for the
individual or for a dependent of the individual.
(3) To purchase a primary residence located in Indiana for the
individual or for a dependent of the individual or to reduce the
principal amount owed on a primary residence located in Indiana
that was purchased by the individual or a dependent of the
individual with money from an individual development account.
(4) To pay for the rehabilitation (as defined in IC 6-3.1-11-11) of
the individual's primary residence located in Indiana.
(5) To begin or to purchase part or all of a business based in
Indiana or to expand an existing small business based in Indiana.
(6) Subject to section 8(b) of this chapter, to purchase a motor
vehicle.
(b) At the time of requesting authorization under section 15 of this
chapter to withdraw money from an individual's account under
subsection (a)(5), the individual must provide the community
development corporation or community based organization with a
business plan that:
(1) has been approved by a financial institution or is approved by
the community development corporation or community based
organization;
(2) includes a description of services or goods to be sold, a
marketing plan, and projected financial statements; and
(3) may require the individual to obtain the assistance of an
experienced business advisor.

Indiana § 4-4-28-16 (Account withdrawal; purposes; approval) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

As added by P.L.15-1997, SEC.1. Amended by P.L.289-2001, SEC.9; P.L.135-2002, SEC.1; P.L.2-2007, SEC.25; P.L.150-2007, SEC.5; P.L.50-2016, SEC.9; P.L.124-2024, SEC.12.