Promulgate rules to implement and administer this section, including rules that determine whether a withdrawal from a college savings account is a qualified or nonqualified withdrawal, as defined under 26 USC 529
, and that impose more than a de minimis penalty, as defined under 26 USC 529
, for nonqualified withdrawals.
Seek rulings and guidance from the U.S. department of the treasury, the internal revenue service and the securities and exchange commission to ensure the proper implementation and administration of the college savings program.
Ensure that if the department changes vendors, the balances of college savings accounts are promptly transferred into investment instruments as similar to the original investment instruments as possible.
Keep personal and financial information pertaining to an account owner or a beneficiary closed to the public, except that the board may release to the appropriate state agency information necessary in determining a beneficiary's eligibility for state financial aid for higher education.
Before December 31 of each year, beginning in 2015, ensure that the account balance limitation under sub. (3) (bm)
is increased for the subsequent year. The annual increase shall be equal to a percentage that is not less than the most recently published national average tuition and fees percentage increase at private, nonprofit 4-year institutions, as determined by the College Board, or such other nationally reputable entity, and shall be subject to the requirements under 26 USC 529
that pertain to the prohibition on excess contributions.
(3) Account owners; beneficiaries; contributions; termination of savings accounts. 16.641(3)(a)(a)
An account owner may do all of the following:
Contribute to a college savings account or authorize any other person to contribute to the account.
Change the beneficiary of a college savings account to a family member, as defined under 26 USC 529
, of the previous beneficiary.
Transfer all or a portion of a college savings account to another college savings account whose beneficiary is a member of the family.
Designate a person other than the beneficiary as a person to whom funds may be paid from a college savings account.
Receive distributions from a college savings account if no other person is designated.
An individual may be the beneficiary of more than one college savings account, and an account owner may be the beneficiary of a college savings account that the account owner has established.
Beginning on August 1, 2015, no contribution may be made to an account if the contribution would cause the account balance of a beneficiary's account, or the combined balance of all accounts of a beneficiary, to exceed $425,000. This contribution limitation applies to all accounts that are established on and after that date, and to all accounts that are in existence on that date that have not yet reached the balance limit specified in this paragraph, subject to the annual increase described in sub. (2) (i)
The board shall establish a minimum initial contribution to a college savings account that may be waived if the account owner agrees to contribute to a college savings account through a payroll deduction or automatic deposit plan. The board shall ensure that any such plan permits the adjustment of scheduled deposits because of a change in the account owner's economic circumstances or a beneficiary's educational plans.
An account owner under this section may terminate his or her college savings account if any of the following occurs:
The beneficiary graduates from high school but is unable to gain admission to an institution of higher education after a good faith effort.
The beneficiary attended an institution of higher education but involuntarily failed to complete the program in which he or she was enrolled.
The beneficiary is at least 18 years old and one of the following applies:
The beneficiary has decided not to attend an institution of higher education.
The beneficiary attended an institution of higher education but voluntarily withdrew without completing the program in which he or she was enrolled.
Other circumstances determined by the board to be grounds for termination.
The board may terminate a college savings account if any portion of the college savings account balance remains unused 10 years after the anticipated academic year of the beneficiary's initial enrollment in an eligible educational institution.
(4) Contracts with professionals.
The board may enter into a contract for the services of accountants, attorneys, consultants and other professionals to assist in the administration and evaluation of the college savings program.
Annually, the board shall submit a report to the governor, and to the appropriate standing committees of the legislature under s. 13.172 (3)
, on the performance of the college savings program, including any recommended changes to the program.
Nothing in this section guarantees an individual's admission to, retention by or graduation from any institution of higher education; a rate of interest or return on a college savings account; or the payment of principal, interest or return on a college savings account.
(7) Exemption from garnishment, lien, levy, attachment and execution; security for loan. 16.641(7)(a)(a)
An account established under this section is not subject to garnishment, lien, levy, attachment, execution or other process of law.
No interest in a college savings account may be pledged as security for a loan.
(8) Financial aid calculations.
The balance of a college savings account shall not be included in the calculation of a beneficiary's eligibility for state financial aid for higher education if the beneficiary notifies the higher educational aids board and the eligible educational institution that the beneficiary is planning to attend that he or she is a beneficiary of a college savings account and if the account owner agrees to release to the higher educational aids board and the eligible educational institution information necessary for the calculation under this subsection.
History: 1999 a. 44
; 2001 a. 7
; 2011 a. 32
; Stats. 2011 s. 16.641; 2013 a. 227
; 2015 a. 55
See also ch. Adm 81
, Wis. adm. code.
Repayment to the general fund. 16.642(1)
The secretary shall transfer from the tuition trust fund, the college savings program trust fund, the college savings program bank deposit trust fund, or the college savings program credit union deposit trust fund to the general fund an amount equal to the amount expended from the appropriations under s. 20.505 (9) (a)
, 1995 stats., s. 20.585 (2) (a)
, 2001 stats., and s. 20.585 (2) (am)
, 2001 stats., when the secretary determines that funds in those trust funds are sufficient to make the transfer. The secretary may make the transfer in installments.
Annually, by June 1, the secretary shall submit a report to the joint committee on finance on the amount available for repayment under sub. (1)
, the amount repaid under sub. (1)
, and the outstanding balance under sub. (1)
History: 2001 a. 16
; 2003 a. 33
; 2005 a. 478
; 2011 a. 32
; Stats. 2011 s. 16.642.
Support accounts for individuals with disabilities. 16.643(1)(a)
"Account owner" means an individual who establishes, and owns, an account under this section and who is one of the following:
If the beneficiary is a minor or otherwise incapable of handling his or her financial affairs, the parent or guardian of the beneficiary.
"Beneficiary" means an eligible individual for whom an account is established under this section.
"Financial institution" means any bank, savings bank, savings and loan association, or credit union that is authorized to do business under state or federal laws relating to financial institutions.
(2) Duties of the department.
The department shall do all of the following:
Ensure that an account established under this section meets the requirements of a qualified ABLE program under 26 USC 529A
Promulgate rules to implement and administer this section.
(3) Account owners; beneficiaries; contributions; termination of accounts. 16.643(3)(a)(a)
An account owner may do all of the following:
Establish an account under this section at a financial institution.
Change the beneficiary of an account to a family member, as defined in 26 USC 529A
, of the previous beneficiary, if the new beneficiary is an eligible individual.
If the account owner is not the beneficiary, terminate an account upon the death of a beneficiary if the account owner is unable to change the beneficiary under subd. 2.
An individual may not be the beneficiary of more than one account established under this section.
The maximum total amount of annual contributions that may be made to an account established under this section for a particular beneficiary is the amount described in 26 USC 529A
(b) (2) (B).
The maximum total amount of all annual contributions that may be made to an account established under this section for a particular beneficiary is the same as the maximum aggregate contribution limit to an account described under s. 16.641
, as set by the college program savings board.
If any person attempts to contribute to an account established under this section and that contribution would exceed one or both of the limits specified in this paragraph, the financial institution to which the contribution is sent shall return to the prospective contributor any amount of the attempted contribution that is necessary to prevent the limits from being exceeded.
If more than one person attempts to contribute to an account established under this section and such contributions would exceed the limits specified in this paragraph, and if the attempted contributions arrive at the financial institution on the same day, the financial institution to which the contributions are sent shall return to the prospective contributors any amount of the attempted contributions, on a prorated basis, that is necessary to prevent the limits from being exceeded.
Upon the death of the beneficiary who is the account owner the account shall terminate, and upon the termination of an account as described in par. (a) 3.
, any amount remaining in the account shall be recoverable by the state under s. 49.849
as property of a decedent is recoverable under that statute. Any amount that remains in the account following such recovery under s. 49.849
shall be paid to the account owner's estate. Recovery authorized under this paragraph may relate only to public assistance received by a beneficiary on and after the date on which an account is established under this section.
(4) Payment of claims.
If a beneficiary incurs costs for qualified expenses, the financial institution shall pay such expenses if sufficient funds to do so are in the account.
(5) Eligibility for long-term care programs.
A person who is determining eligibility for an individual for a long-term care program under s. 46.27
, or 46.277
, the family care benefit under s. 46.286
, the family care partnership program, the long-term care program defined in s. 46.2899 (1)
, or any other demonstration program or program operated under a waiver of federal medicaid law that provides long-term care benefits shall exclude from the determination any income from assets accumulated in an account created under this section for a beneficiary.
History: 2015 a. 55
"Affiliate" means a person, as defined in s. 77.51 (10)
, that controls, is controlled by, or is under common control with another person, as defined in s. 77.51 (10)
"Agency" means an office, department, agency, institution of higher education, association, society or other body in state government created or authorized to be created by the constitution or any law, which is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority.
"Computer services" means any services in which a computer is utilized other than for personal computing purposes.
"Contractual services" includes all services, materials to be furnished by a service provider in connection with services, and any limited trades work involving less than $30,000 to be done for or furnished to the state or any agency.
"Control" means to own, directly or indirectly, more than 10% of the interest in or voting securities of a business.
"Cost-benefit analysis" means a comprehensive study to identify and compare the total cost, quality, technical expertise, and timeliness of a service performed by state employees and resources with the total cost, quality, technical expertise, and timeliness of the same service obtained by means of a contract for contractual services.
"Executive branch agency" means an agency in the executive branch but does not include the building commission.
"Judicial branch agency" means an agency created under ch. 757
or an agency created by order of the supreme court.
"Legislative service agency" means an agency created under ch. 13
which is authorized, or the head of which is authorized, to appoint subordinate staff, except the building commission.
"Limited trades work" means the repair or replacement of existing equipment or building components with equipment or components of the same kind, if the work is not dependent upon the design services of an architect or engineer, and does not alter or affect the performance of any building system, structure, exterior walls, roof or exits, or the fire protection or sanitation of the building. "Limited trades work" includes decorative and surface material changes within a building and minor preventive maintenance to ancillary facilities such as drives, sidewalks and fences.
"Municipality" means a county, city, village, town, school district, board of school directors, sewer district, drainage district, technical college district or any other public or quasi-public corporation, officer, board or other body having the authority to award public contracts.
"Officer" includes the person or persons at the head of each agency, by whatever title the person or persons may be elsewhere designated.
"Permanent personal property" means any and all property which in the opinion of the secretary will have a life of more than 2 years.
"Personal computing" means utilizing a computer that is located at the work station where the input or output of data is conducted.
"Recovered material" means a product which is recovered from solid waste in a form identical to the original form for a use that is the same as or similar to the original use.
"Recycled material" means a product which is manufactured from solid waste or paper mill sludge.
"Recycled or recovered content" means the proportion of an item, by weight or other measure, which is recycled material or recovered material.