| (a) Any person may make contributions to an ABLE account
for a taxable year, for the benefit of a designated beneficiary who
is an eligible individual for such taxable year. Any contributions
to an ABLE account, excluding any excess contributions, are an asset
of the account for the benefit of the designated beneficiary.
(b) No contributions will be accepted for an ABLE account
unless:
(1) the contribution is in U.S. dollars in the form
of a check, money order, cashier's check, automatic contribution plan,
ACH, including SSI or SSDI electronic deposits to the extent allowable
by law, or payroll deduction;
(2) the designated beneficiary is an eligible individual
during the taxable year; and
(3) such contribution is not an excess contribution
as defined in these rules.
(c) Any contributions to an ABLE account on behalf
of a designated beneficiary may be subject to any applicable Internal
Revenue Service gift tax rules in effect at the time of the contribution,
as provided by Internal Revenue Code, §529A.
(d) Excess contributions to an ABLE account will be
rejected and refunded automatically to the contributor making the
excess contribution after obtaining the taxpayer identification number
of the contributor if required by federal law. In the event that excess
contributions are refunded by the Program to the beneficiary or to
the participant on behalf of the beneficiary, the Program will provide
advance written or electronic notification to the beneficiary or participant
of a pending refund within a reasonable time, but not less than thirty
(30) days if allowed by state or federal law, prior to the refund
by the Program.
(e) Any contributions returned for any of the above
reasons will not include earnings or interest.
(f) Informational materials used in connection with
a contribution to an ABLE account must clearly indicate that the account
is not insured by this state and that neither the principal deposited
nor the investment return is guaranteed by the state.
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| Source Note: The provisions of this §7.187 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective April 9, 2018, 43 TexReg 2165; amended to be effective June 22, 2023, 48 TexReg 3300 |
