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.
Adm 81.05(4) (4) The execution of a participation agreement violates any federal or state law.
Adm 81.05(5) (5) The board determines that the number of accounts in the program should be limited.
Adm 81.05 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.06 Adm 81.06 Change of account ownership.
Adm 81.06(1) (1) An account owner may designate a successor who shall become the new account owner automatically upon the death of the account owner. This designation may be made at any time by submitting a written designation of the successor to the program manager containing the information set forth in the account change request form. Designation of a successor shall be effective upon registration in the records of the program manager.
Adm 81.06(2) (2) If a change in the ownership of an account is required by a court order directing such change, or by an affidavit or declaration that is recognized under applicable law as requiring transfer of ownership upon death without a court order, such change shall be effective upon receipt by the program manager of such information unless otherwise required by law.
Adm 81.06(3) (3) Any other request to transfer ownership to a new account owner shall be made by submitting to the program manager a written designation of a new account owner containing the information set forth in the program description and participation agreement. Transfer of ownership shall not be effective until registered in the records of the program manager.
Adm 81.06 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.07 Adm 81.07 Designated beneficiary. Any individual regardless of age or relationship to the account owner, including the account owner, may be a designated beneficiary under the program. There shall be only one designated beneficiary per account. Subject to the maximum contribution level, any number of accounts may be opened for a single designated beneficiary.
Adm 81.07 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.08 Adm 81.08 Change of designated beneficiary.
Adm 81.08(1)(1) Only an account owner may change the designated beneficiary of an account. The designated beneficiary may only be changed to a member of the family of that designated beneficiary.
Adm 81.08(2) (2) To change a designated beneficiary, the account owner shall submit a written request to the program manager containing all the information set forth in the program description and participation agreement.
Adm 81.08(3) (3) Upon receipt of the written request, the program manager shall register the information regarding the newly designated beneficiary in the records of the program. The change of the designated beneficiary shall be effective upon registration.
Adm 81.08 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.09 Adm 81.09 Contributions.
Adm 81.09(1)(1) Cash contributions. Any person may make a contribution to an account of a designated beneficiary. Contributions shall be made only in cash.
Adm 81.09(2) (2)Maximum contribution limit. Contributions to the accounts established for a designated beneficiary shall not, in the aggregate, exceed that amount necessary to provide for the qualified higher education expenses of the designated beneficiary. The board shall establish from time to time the maximum amount that may be contributed in the aggregate to the accounts of an individual designated beneficiary. Contributions in excess of that limit shall not be accepted and shall be returned to the contributor.
Adm 81.09(3) (3)Minimum contribution limit. The minimum amount contributed at the time an account is opened under s. Adm 81.04, and the minimum amount of any additional contribution to be made to an account shall be established from time to time by the board and set forth in the program description and participation agreement.
Adm 81.09(4) (4)Rollover contributions. If rollover distributions are allowed by another state's qualified tuition program, an account owner may deposit all or part of the funds from an account in that state's qualified tuition program to a new account in the program as provided under section 529 of the internal revenue code, and any regulations issued thereunder. When making a rollover contribution, the account owner shall complete the forms and make such disclosures of financial information as set forth in the program description and participation agreement. If the rollover distribution deposited in the program account would cause the total account balance of all accounts for that designated beneficiary to exceed the maximum contribution limit, the program manager shall refuse the excess funds.
Adm 81.09(5) (5)Investment direction prohibition. Except as permitted under section 529 of the internal revenue code and any regulations issued thereunder, no person contributing to an account may direct the investment or investment earnings of any contribution of an account.
Adm 81.09 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03; correction in (3) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672.
Adm 81.10 Adm 81.10 Separate accounting. Separate records and accounting shall be maintained for each account established under the program. The program manager shall issue reports to each account owner at least annually.
Adm 81.10 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.11 Adm 81.11 General distributions.
Adm 81.11(1) (1) Calculating earnings on multiple accounts. If an individual is the designated beneficiary of more than one account, all contributions and earnings with respect to those accounts shall be treated in a manner consistent with the requirements of section 529 of the internal revenue service for purposes of calculating the earnings portions of any distribution with respect to that designated beneficiary.
Adm 81.11(2) (2)Distribution requests. An account owner may request a distribution of funds by submitting to the program manager at least three business days prior to the date of the requested distribution a completed distribution request form. Upon receipt, the program manager shall commence processing properly completed distribution request forms as soon as practicable.
Adm 81.11(3) (3)Distribution limitation. A designated beneficiary may not authorize distribution or withdrawal of account funds.
Adm 81.11(4) (4)Nonqualified distribution. A distribution of funds from an account for any use other than qualified higher education expenses for the designated beneficiary constitutes a nonqualified distribution and may be subject to the additional tax imposed by section529(c)(6) of the internal revenue code.
Adm 81.11 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.12 Adm 81.12 Refund of qualified distribution payment. An eligible educational institution that owes a full or partial refund of a qualified distribution due to an overpayment of educational expenses or for any other reason shall pay the refund directly to the program manager for credit to the applicable designated beneficiary's account. A refund may not be paid directly to the designated beneficiary or account owner.
Adm 81.12 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.13 Adm 81.13Account termination.
Adm 81.13(1) (1) The board shall determine the conditions under which an account may be terminated, including but not limited to the following:
Adm 81.13(1)(a) (a) The account balance is below an established minimum.
Adm 81.13(1)(b) (b) The account has been inactive for an established amount of time.
Adm 81.13(1)(c) (c) Any portion of the account remains unused 10 years after the anticipated academic year of the designated beneficiary's initial enrollment in an eligible educational institution.
Adm 81.13(1)(d) (d) The account owner or the designated beneficiary provides false or misleading information to the board, the program manager, or an eligible educational institution.
Adm 81.13(2) (2) Prior to termination, the program manager shall give reasonable notice to the account owner of the proposed termination. The notice shall provide a reasonable period of time, as determined by the board, in which to prevent termination by either making an additional contribution or a qualified distribution as necessary. Upon termination, the account balance shall be paid to the account owner as a nonqualified distribution, subject to applicable federal or state taxes, and any additional fees as determined by the board.
Adm 81.13 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.14 Adm 81.14 Fees. The board may charge account owners a fee for the administrative expenses of the program. Fees shall be clearly identified in the program description that accompanies the participation agreement.
Adm 81.14 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.15 Adm 81.15 Penalties. The board may impose penalties as necessary to maintain eligibility as a qualified tuition program under section 529 of the internal revenue code.
Adm 81.15 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
Adm 81.16 Adm 81.16 Investment policies. The board shall establish all investment guidelines for the program.
Adm 81.16 History History: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03.
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