Guam § 50004 - Program Requirements; College Account.

§ 50004. Program Requirements; College Account.

(a) A college account may be opened by any person who desires to

save money for the payment of qualified higher education expenses on

behalf of a designated beneficiary. Said person shall be considered the

account owner as defined in § 50001, supra. An application for an account

shall be in a form prescribed by the program manager and shall contain:

(1) The name, mailing address, and social security number or

employer identification number of the account owner;

(2) The designation of a beneficiary;

(3) The name, mailing address, and social security number of the

designated beneficiary;

(4) A certification relating to no excess contributions; and

(5) Such other information as the Commissioner may require.

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(b) Only the account owner may contribute to the account after it is

opened.

(c) Contributions to accounts may be made only in cash.

(d) An account owner may withdraw all or part of the balance from an

account on sixty (60) days’ notice or a shorter period as may be authorized

by rules governing the program. The rules enacted by the Commissioner

shall include provisions to generally enable the determination of whether a

withdrawal is a non qualified withdrawal or a qualified withdrawal. The

rules may require one (1) or more of the following:

(1) That an account owner seeking to make a qualified withdrawal

shall provide certifications of qualified higher education expenses and

other information required to comply with § 529 of the Internal

Revenue Code of 1986, as amended, or successor legislation;

(2) That withdrawals not meeting the requirements of this Section

shall be treated as nonqualified withdrawals by the program manager

and, if the withdrawals are subsequently deemed qualified within a

reasonable time as specified by the Commissioner, that the account

owner may seek a refund of penalties directly from the program

manager.

(e) An account owner may change the designated beneficiary of an

account to an individual who is a member of the family of the prior

designated beneficiary. An account owner may transfer all or a portion of an

account to another college account, the designated beneficiary of which is a

member of the same family, as defined in § 529 of the Internal Revenue

Code of 1986, as amended, or successor legislation, as the beneficiary of the

initial account. Changes in designated beneficiaries and transfers under this

Section shall not be permitted if they constitute excess contributions.

(f) In the case of any nonqualified withdrawal from an account, an

amount equal to ten percent (10%) (or that rate imposed under final

regulations adopted by the Internal Revenue Service) of the portion of the

withdrawal constituting income as determined in accordance with § 529 of

the Internal Revenue Code of 1986, as amended, or successor legislation,

shall be collected as a penalty and paid to the college savings program trust

fund, as provided under § 529 of the Internal Revenue Code of 1986, as

amended, or successor legislation, or any guidance issued by the Internal

Revenue Service.

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(g) The percentage of the penalty described in Subsection (f) hereof

may be increased if the Commissioner determines that the amount of the

penalty must be increased to constitute a greater than de minimus penalty

for purposes of qualifying the program as a qualified tuition program under