<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 13-63-1 - Definitions.</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s8ae71243ed654aae8bfda18bf9b3dee7Normal { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s8ae71243ed654aae8bfda18bf9b3dee7SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s8ae71243ed654aae8bfda18bf9b3dee7CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s8ae71243ed654aae8bfda18bf9b3dee7Statute { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1 { margin-left: 0.75in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1-000000 { margin-left: 0.75in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s8ae71243ed654aae8bfda18bf9b3dee7000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s8ae71243ed654aae8bfda18bf9b3dee7NoIndent { text-indent: 0.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s8ae71243ed654aae8bfda18bf9b3dee7SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 13-63-1 - Definitions."><meta property="og:description" content="SDLRC Codified Law 13-63-1 - Definitions."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/13-63-1"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7Normal"><a href="https://sdlegislature.gov/Statutes?Statute=13-63-1" rel="noopener"><span class="s8ae71243ed654aae8bfda18bf9b3dee7SENU">13-63-1</span></a><span xml:space="preserve" class="s8ae71243ed654aae8bfda18bf9b3dee7SENU">. </span><span class="s8ae71243ed654aae8bfda18bf9b3dee7CL">Definitions.</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7Statute"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">Terms used in this chapter mean:</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(1)    "Account," an account established as prescribed in this chapter;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span xml:space="preserve" class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(2)    "Account owner," the person who, under this chapter or rules promulgated by the council pursuant to chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=1-26" rel="noopener"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">1-26</span></a><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">, is entitled to select or change the designated beneficiary of an account, to designate any person other than the designated beneficiary to whom funds may be paid from the account, or to receive distributions from the account if no such other person is designated;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(3)    "Cash," currency, bills, and coins in circulation. A negotiable instrument may be converted to cash if properly endorsed and presented to a financial institution for deposit. An automatic transfer, cashier's check, certified check, money order, payroll deposit, traveler's check, personal check, and wire transfer may also be converted to cash if presented to a financial institution for deposit;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(4)    "Contribution," any payment directly allocated to an account for the benefit of a designated beneficiary or used to pay late fees or administrative fees associated with an account, and that portion of any rollover amount treated as a contribution under section 529 of the Internal Revenue Code;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(5)    "Contributor," any person making a contribution to an account;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(6)    "Council," the South Dakota Investment Council;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span xml:space="preserve" class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(7)    "Designated beneficiary," except as provided in § </span><a href="https://sdlegislature.gov/Statutes?Statute=13-63-25" rel="noopener"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">13-63-25</span></a><span xml:space="preserve" class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">, the individual designated at the time the account is opened as the individual whose higher education expenses are expected to be paid from the account or, if this designated beneficiary is replaced in accordance with § </span><a href="https://sdlegislature.gov/Statutes?Statute=13-63-12" rel="noopener"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">13-63-12</span></a><span xml:space="preserve" class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes?Statute=13-63-13" rel="noopener"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">13-63-13</span></a><span xml:space="preserve" class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">, or </span><a href="https://sdlegislature.gov/Statutes?Statute=13-63-14" rel="noopener"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">13-63-14</span></a><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">, the replacement beneficiary;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(8)    "Eligible education institution," as defined in section 529(e)(5) of the Internal Revenue Code;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(9)    "Financial institution," any bank, commercial bank, national bank, savings bank, savings and loan association, credit union, an insurance company, brokerage firm, or other similar entity that is authorized to do business in this state;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(10)    "Investment direction," specifying or attempting to specify the particular financial instruments or ownership interests either individually, or within a fund family or other group of financial instruments or ownership interests held as an investment group, into which the contributions or earnings are invested. Selecting an initial type of investment program if more than one program is offered does not constitute an investment direction;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(11)    "Internal Revenue Code," the United States Internal Revenue Code (January 1, 2025);</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1-000000"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(12)    "Member of the family," as defined in section 529(e)(2) of the Internal Revenue Code;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(13)    "Person," an individual, a corporation, a partnership, a trust or estate, a joint-stock company, an association, or a syndicate, group, pool, joint venture, or other unincorporated organization or group;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(14)    "Program," the higher education savings program established under this chapter;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(15)    "Program manager," any financial institution selected by the council to act as the depository and manager for an account;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(16)    "Qualified higher education expenses," as defined in section 529(e)(3) of the Internal Revenue Code;</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(17)    "Qualified tuition program," as defined in section 529(b) of the Internal Revenue Code; and</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7StatuteNumber1"><span class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont">(18)    "Rollover," a disbursement or transfer from an account of a designated beneficiary that is transferred to or deposited within sixty days into an account of the same designated beneficiary or another individual who is a member of the family of the designated beneficiary, if the transferee account was created under this chapter or under a qualified tuition program maintained by another state in accordance with section 529 of the Internal Revenue Code, or any other rollover allowed by section 529 of the Internal Revenue Code.</span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7Normal"><span xml:space="preserve" class="s8ae71243ed654aae8bfda18bf9b3dee7000001"> </span></p><p dir="ltr" class="s8ae71243ed654aae8bfda18bf9b3dee7NoIndent"><span xml:space="preserve" class="s8ae71243ed654aae8bfda18bf9b3dee7DefaultParagraphFont-000002">Source: </span><span class="s8ae71243ed654aae8bfda18bf9b3dee7SCL">SL 2001, ch 97, § 1; SL 2002, ch 94, § 7; SL 2022, ch 49, § 1; SL 2023, ch 63, § 1; SL 2024, ch 65, § 1; SL 2025, ch 87, § 1.</span></p></div></body></html>