| (a) The following words, terms, and phrases, when used
in this subchapter, shall have the following meanings. In addition,
definitions set forth in Internal Revenue Code, §529A and Education
Code, Chapter 54, Subchapter J are incorporated in these rules.
(1) ABLE account or "account"--Has the meaning assigned
by Internal Revenue Code, §529A and means an account in the Texas
ABLE Program.
(2) ABLE Program or "Program"--The Texas Achieving
a Better Life Experience Program created under Education Code, Chapter
54, Subchapter J.
(3) Available funds--The balance of funds held in an
ABLE account, after deducting any holds, fees or expenses, or pending
transactions, including funeral expenses that may be incurred following
the death of a designated beneficiary.
(4) Board--Prepaid Higher Education Tuition Board established
under Education Code, §54.602.
(5) Contribution--Amounts paid by contributors to an
ABLE account.
(6) Contributor--Any person who makes a contribution
to an ABLE account.
(7) Designated beneficiary--A resident of this state
with a disability who is an eligible individual and named as the beneficiary
of an ABLE account. The term may also include out-of-state residents
to the extent allowed by law.
(8) Disability certification--With respect to the individual
who is the eligible individual, a certification to the satisfaction
of the Secretary of the United States Treasury by the individual or
the parent or guardian, or other authorized fiduciary of the individual,
that certifies that the individual has a medically determinable physical
or mental impairment, which results in marked and severe functional
limitations, and which can be expected to result in death or which
has lasted or can be expected to last for a continuous period of not
less than 12 months, or is blind within the meaning of Social Security
Act, §1614(a)(2) and such blindness or disability occurred before
the date on which the individual attained age 26, subject to any changes
or modifications in eligibility criteria in Internal Revenue Code, §529A
or Internal Revenue Service regulations or guidance.
(9) Distribution--Any amounts paid by the ABLE Program
to or on behalf of an eligible individual.
(10) Eligibility certification--The participant's self-certification
under penalty of perjury in a format acceptable to the Board or as
required by state or federal regulations or guidance that the designated
beneficiary of the account is currently an eligible individual as
defined by Internal Revenue Code, §529A.
(11) Eligible individual--A person who meets the requirements
of Internal Revenue Code, §529A or Internal Revenue Service regulations
or guidance and is certified by an eligibility certification to the
Board as eligible to participate in the ABLE Program.
(12) Eligible member of the family--An eligible individual
and a member of the family of the former beneficiary to the extent
provided by Internal Revenue Code, §529A.
(13) Excess contribution--Contributions that would
cause:
(A) the balance of an ABLE account to exceed the amount
established by the Board in accordance with Internal Revenue Code,
Title 26, §529(b)(6); or
(B) the aggregate contributions from all contributors
in a taxable year to exceed the amount in effect under Internal Revenue
Code, Title 26, §529A(b)(2)(B) for the calendar year in which
the taxable year begins.
(14) Financial institution--A bank, a trust company,
a depository trust company, an insurance company, a broker-dealer,
a registered investment company or investment manager, the Texas Treasury
Safekeeping Trust Company, or another similar financial institution
authorized to transact business in this state.
(15) Internal Revenue Code--The Internal Revenue Code
of 1986.
(16) Investment options--Investment options offered
by the Program for selection by the participant.
(17) Participant--A designated beneficiary or the parent
or guardian or other fiduciary of the beneficiary who has entered
into a participation agreement.
(18) Participation agreement--A contract between a
participant and the Board under this subchapter that conforms to the
requirements prescribed by this subchapter and Internal Revenue Code, §529A
and includes the application for enrollment submitted in good order.
(19) Plan manager--An entity, including a financial
institution, any state or federal agency, contractor or state or multi-state
consortium engaged by the Board to carry out certain duties as specified
and delegated by the Board for administration of the Program.
(20) Qualified disability expenses--Any expenses related
to the eligible individual's blindness or disability that are made
for the benefit of the eligible individual who is the designated beneficiary,
and includes expenses for education, housing, transportation, employment
training and support, assistive technology and personal support services,
health, prevention and wellness, financial management and administrative
services, legal fees, expenses for oversight and monitoring, funeral
and burial expenses, and any other expenses that may be identified
from time to time in Internal Revenue Service regulations or guidance
or by amendments to Internal Revenue Code, §529A.
(21) Transfer to state--The reimbursement that may
be paid to the state Medicaid program upon the designated beneficiary's
death. After timely claim submitted in good order, the reimbursement
will be made from any available funds and will be calculated according
to Internal Revenue Code, §529A(f).
(b) In the event of a conflict in the definitions,
the Program definitions shall be governed by Internal Revenue Code, §529A,
Education Code, Chapter 54, Subchapter J, and these rules, in that
order.
|
