(a) Voluntary termination. A participant may voluntarily
terminate an ABLE account in accordance with the terms of the participation
agreement and by using the procedures approved by the Board.
(b) Involuntary termination. If the Board finds a participant
has made a material misrepresentation regarding personal information
or eligibility on the participation agreement or in any communication
regarding the Texas ABLE Program, or if the designated beneficiary
is deceased, the Board may involuntarily terminate and refund any
available funds of the ABLE account subject to any unpaid expenses
or fees due the Program, and, if applicable, for transfer to state
following the designated beneficiary's death. A material misrepresentation
includes, but is not limited to, providing a false taxpayer identification
number or a false certification that an individual is an eligible
individual or eligible member of the family.
(c) A distribution related to account termination will
be reported to the Internal Revenue Service and other state and federal
agencies as required and may have adverse tax or benefit consequences
to the beneficiary.
(d) In the event that available funds are refunded
by the Program for involuntary account termination, to include but
not limited to material misrepresentation, the Program will provide
advance written or electronic notification to the 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.
|