Section 81.11. General distributions.

 

(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.

(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.

(3)   Distribution limitation. A designated beneficiary may not authorize distribution or withdrawal of account funds.

(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 section 529 (c)(6) of the internal revenue code.

History: CR 02-009 : cr. Register January 2003 No. 565 , eff. 2-1-03.