| (a) General provisions. The owner of a savings trust account
may withdraw any amount from that account if:
(1) the withdrawal is made in accordance with Education Code,
Chapter 54, Subchapter G; this subchapter; and the applicable savings trust
agreement;
(2) the owner certifies to the appropriate plan manager the
portion, if any, of the withdrawal that constitutes a nonqualified withdrawal
if requested by the plan manager; and
(3) the withdrawal would not adversely affect the tax status
of the savings plan under applicable provisions of Internal Revenue Code of
1986, as amended. Notwithstanding the owner's certifications that are described
in clause (2) above, the board may independently determine the extent to which
any withdrawal constitutes a nonqualified withdrawal.
(b) Responsibility of plan managers. A plan manager shall monitor
withdrawals from each savings trust account in the manager's custody to ensure
compliance with any applicable limitations on withdrawals.
(c) Examples of particular types of withdrawals. The circumstances
under which a withdrawal is authorized include the following.
(1) If the beneficiary of a savings trust agreement receives
a full or partial scholarship for tuition and required fees, the owner of
the agreement may withdraw the amount of the scholarship from the savings
trust account. A withdrawal under this paragraph may occur:
(A) only as each academic term occurs; and
(B) only if proof of the scholarship is submitted to the plan
manager that has custody of the account, in a form that is acceptable to the
plan manager.
(2) If the beneficiary of a savings trust agreement dies or
becomes disabled:
(A) The owner of the agreement may withdraw the entire balance
of the savings trust account or replace the deceased or disabled beneficiary
with a qualified replacement beneficiary as provided in §7.110 of this
title (relating to Replacement of Beneficiary).
(B) If the owner of the agreement requests a withdrawal, the
appropriate plan manager shall pay the withdrawal to the owner not later than
the 60th day after the date on which the plan manager receives proof of the
death or disability in a form that is acceptable to the plan manage.
|
