| (a) The participant may cancel a participation agreement
at will and request refund of all of the available funds of an ABLE
account less any amounts due for transfer to state, if applicable,
at any time in a format approved by the Board.
(b) The Board shall determine the calculation method
of any refunds due for cancellations, excess contributions, transfer
to state, or death of the designated beneficiary.
(c) Any refunds due to cancellation or termination
of an ABLE account, not including any amounts due for transfer to
state, if applicable, will be payable to the designated beneficiary
or participant on behalf of the designated beneficiary unless the
Program is legally directed otherwise.
(d) Excess contributions will automatically be refunded
to the contributor by the Program without earnings or interest.
(e) Distributions, including any earnings included
in a refund, will be reported to the Internal Revenue Service, Social
Security Administration, and any other state or federal agencies as
required by law and may subject the distributee to income tax on any
earnings and a tax penalty and could affect benefits or result in
legal consequences.
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