Register December 2011 No. 672
Chapter Adm 81
WISCONSIN COLLEGE SAVINGS PROGRAM BOARD
Adm 81.01 Purpose and analysis.
Adm 81.03 Account owner eligibility.
Adm 81.04 Opening an account.
Adm 81.05 Refusal to open an account.
Adm 81.06 Change of account ownership.
Adm 81.07 Designated beneficiary.
Adm 81.08 Change of designated beneficiary.
Adm 81.10 Separate accounting.
Adm 81.11 General distributions.
Adm 81.12 Refund of qualified distribution payment.
Adm 81.13 Account termination.
Adm 81.16 Investment policies.
Ch. Adm 81 Note
Note: Chapter Treas 1 was created as an emergency rule effective January 7, 2002. Chapter Treas 1 was renumbered chapter Adm 81 under s. 13.92 (4) (b) 1., Stats.,
Register December 2011 No. 672.
Adm 81.01
Adm 81.01
Purpose and analysis. This chapter establishes the procedures, standards and eligibility requirements for investment in accounts under the Wisconsin college savings program, into which a participant may invest funds to be used by individual beneficiaries to pay the cost of attendance at an institution of higher education. The Wisconsin college savings program is established as a qualified tuition program pursuant to section
529 of the internal revenue code [
26 USC 529], and is administered by the department.
Adm 81.01 Note
Note: The application form referenced in s.
Adm 81.04 (1) and the distribution request form referenced in s.
Adm 81.11 (2) are available on the Wisconsin College Savings Program website at:
www.edvest.com, or by writing to: EdVest, P.O. Box 7864, Madison, WI 53707-7864.
Adm 81.01 History
History: CR 02-009: cr.
Register January 2003 No. 565, eff. 2-1-03; correction made under s.
13.92 (4) (b) 6., Stats.,
Register December 2011 No. 672.
Adm 81.02
Adm 81.02
Definitions. In this chapter:
Adm 81.02(1)
(1) "Account" means a formal record of transactions maintained for a particular designated beneficiary to meet qualified higher education expenses under the program.
Adm 81.02(3)
(3) "Board" means the Wisconsin college savings program board.
Adm 81.02(4)
(4) "Cash" includes checks, money orders, wire transfers, or electronic funds transfers through payroll deduction, automatic contribution plans or similar methods, but does not include currency.
Adm 81.02(5)
(5) "Contribution" means any payment directly allocated to an account for the benefit of a designated beneficiary or that is used to pay administrative or other fees associated with the account.
Adm 81.02(6)
(6) "Department" means the Wisconsin department of administration.
Adm 81.02(7)
(7) "Designated beneficiary" has the meaning found in section
529(e)(1) of the internal revenue code.
Adm 81.02(8)
(8) "Eligible educational institution" has the meaning found in section
529(e)(5) of the internal revenue code.
Adm 81.02(9)
(9) "Maximum contribution limit" is the sum total market value amount established by the board that may be accumulated in the accounts of a designated beneficiary to meet qualified higher education expenses.
Adm 81.02(10)
(10) "Member of the family" has the meaning found in section
529(e)(2) of the internal revenue code.
Adm 81.02(11)
(11) "Non-qualified distribution" means any distribution of funds from an account that is not a qualified distribution.
Adm 81.02(12)
(12) "Person" includes an individual, a trust, or a body corporate or politic.
Adm 81.02(13)
(13) "Program" means the qualified tuition program established under s.
16.641, Stats.
Adm 81.02(14)
(14) "Program description and participation agreement" means the contract between an account owner and the board setting forth the terms and conditions under which the account owner participates in the program.
Adm 81.02(15)
(15) "Program manager" means the entity under contract with the department to serve as the program administrator, marketing agent and investment manager of the program.
Adm 81.02(16)
(16) "Qualified distribution" means any distribution of funds, as defined in section
529 of the internal revenue code, for qualified higher education expenses from an account pursuant to a distribution request from the account owner.
Adm 81.02(17)
(17) "Qualified higher education expenses" has the meaning found in section
529(e)(3) of the internal revenue code.
Adm 81.02(18)
(18) "Qualified tuition program" means a savings program to help defray the cost of college expenses under section
529 of the internal revenue code.
Adm 81.02(19)
(19) "Rollover contribution" means the transfer of all or part of an account from one qualified tuition program account to another qualified tuition program account.
Adm 81.02 History
History: CR 02-009: cr.
Register January 2003 No. 565, eff. 2-1-03; correction in (2), (13) made under s.
13.92 (4) (b) 7., Stats.,
Register December 2011 No. 672.
Adm 81.03
Adm 81.03
Account owner eligibility. Any person legally able to contract under applicable state law is eligible to establish an account for the benefit of a designated individual. There shall be only one account owner per account.
Adm 81.03 History
History: CR 02-009: cr.
Register January 2003 No. 565, eff. 2-1-03.
Adm 81.04(1)(1) To open an account, an applicant shall submit a properly completed and signed application, which incorporates the program description and participation agreement, to the program manager. A contribution may be made as provided in
s. Adm 81.09 or by any alternate method established by the board or the program manager.
Adm 81.04(2)
(2) An applicant shall select an available investment option in which all contributions to the account shall be invested. After an account has been opened, the investment option selected may only be changed as permitted under section
529 of the internal revenue code and any regulations issued thereunder.
Adm 81.04(3)
(3) The participation agreement shall be accompanied by a program description supplied by the program manager disclosing the program characteristics, including the investment options, investment risks, program fees, and other information as determined by the board and the program manager.
Adm 81.04(4)
(4) Acceptance by the program manager of application materials, the initial contribution, or selection of contribution method for processing shall not be deemed an agreement to open an account.
Adm 81.04(5)
(5) The program manager shall accept applications to open accounts and accept subsequent contributions for a designated beneficiary in the order they are received, up to the maximum contribution limit.
Adm 81.04(6)
(6) Upon determining that an application has met all the requirements for opening an account, the program manager shall notify the applicant in writing that an account has been established.
Adm 81.04 History
History: CR 02-009: cr.
Register January 2003 No. 565, eff. 2-1-03; correction in (1) made under s.
13.92 (4) (b) 7., Stats.,
Register December 2011 No. 672.
Adm 81.05
Adm 81.05
Refusal to open an account. The program manager or the board may refuse to open an account for any of the following reasons:
Adm 81.05(1)
(1) The applicant is not an eligible account owner.
Adm 81.05(2)
(2) The applicant has not provided all of the information required in the application.
Adm 81.05(3)
(3) The maximum contribution level for the proposed designated beneficiary has already been met.
