Oklahoma § 56-4001.4 - Establishment of accounts – Contributions Withdrawals

§ 56-4001.4. Establishment of accounts – Contributions Withdrawals

Oklahoma Statutes - Title 56. Poor Persons

A. The program shall be operated through the use of accounts.

An account may be established to save for the qualified disability

expenses of the account owner by:

1. Completing an application in the form prescribed by the

Treasurer;

2. Paying the one-time application fee established by the

Treasurer;

3. Making the minimum contribution required by the Treasurer or

by opening an account; and

4. Designating a single ABLE account per beneficiary, except in

the case of rollovers or program-to-program transfers.

B. Any person may make contributions to an account after the

account is opened.

C. Contributions to accounts may be made only in cash.

D. Account owners 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 the Treasurer, under rules prescribed by the

Treasurer. These rules shall include provisions that will generally

enable the Treasurer or program manager to determine if a withdrawal

is a nonqualified withdrawal or a qualified withdrawal. The rules

may, but need not, require one or more of the following:

1. Account owners seeking to make a qualified withdrawal or

other withdrawal that is not a nonqualified withdrawal shall provide

certifications, copies of bills for qualified disability expenses or

other supporting material; and

2. Withdrawals not meeting certain requirements shall be

treated as nonqualified withdrawals by the program manager.

E. An account owner may change the designated beneficiary of an

account to an individual as provided under Section 529A of the

Internal Revenue Code.

F. An account owner may make the changes, transfers and

withdrawals described in Section 529A of the Internal Revenue Code

to an account that is owned by the account owner. If a change of

beneficiary or transfer causes the total account balance for all

accounts under the program for the new beneficiary to exceed the

maximum account balance limit, the excess amount shall be rejected

and returned to the account owner as provided in Section 529A of the

Internal Revenue Code.

G. Each account for each designated beneficiary shall be

maintained separately from each other account under the program.

H. Separate records and accounting shall be maintained for each

account for each designated beneficiary.

I. An account owner may direct the investment of any

contributions to an account or the earnings from the account only as

permitted by Section 529A of the Internal Revenue Code.

J. If the Treasurer terminates the authority of a financial

institution to hold accounts and accounts must be moved from that

Oklahoma Statutes - Title 56. Poor Persons

financial institution to another financial institution, the

Treasurer shall select the financial institution and type of

investment to which the balance of the account is moved unless the

Internal Revenue Service provides guidance stating that allowing the

account owner to select among several financial institutions that

are then contractors would not cause a plan to cease to be a

qualified state tuition plan.

K. No account owner may use an interest in an account as

security for a loan. Any pledge of an interest in an account is of

no force and effect.

L. The Treasurer shall adopt guidelines and procedures to

prevent contributions on behalf of a designated beneficiary in

excess of those allowed pursuant to Section 529A of the Internal

Revenue Code to pay the qualified disability expenses of the

designated beneficiaries.

M. The financial institution(s) shall make all reports and

informational returns as required by the Internal Revenue Service,

the Oklahoma Tax Commission and other pertinent federal and state

laws and regulations.

N. The program manager shall make such reports with respect to

contributions, distributions and other matters that the Treasurer

may require pursuant to federal and state law reporting

requirements. The statement shall identify the contributions made

during a preceding twelve-month period, the total contributions made

through the end of the period, the value of the account as of the

end of this period, distributions made during this period and any

other matters that the Treasurer requires be reported to the account

owner.

Added by Laws 2016, c. 354, § 5, eff. Jan. 1, 2017.