Cal. Code Regs. tit. 10 § 9005

Current through Register 2024 Notice Reg. No. 52, December 27, 2024

Section 9005 - Qualified Distributions

(a) Qualified Distributions. Any Distribution that is (1) used to pay the Qualified Disability Expenses of the Account Owner as defined by 26 CFR 1.529A-1(b)(15) or (2) a Rollover is a Qualified Distribution.

(b) Nonqualified Distributions. Any Distribution that is not (1) used to pay the Qualified Disability Expenses of the Account Owner as defined by 26 CFR 1.529A-1(b)(15) or (2) a Rollover is a Nonqualified Distribution. The earnings portion of Nonqualified Distributions may be subject to federal and state income tax and added tax penalties. Additionally, a Nonqualified Distribution may impact benefit eligibility and benefit amounts.

Cal. Code Regs. Tit. 10, § 9005

Note: Authority cited: Section 4882, Welfare and Institutions Code. Reference: Sections 4875, 4877 and 4878, Welfare and Institutions Code; Section 529A, Internal Revenue Code; Pub. L. 113-295, div. B, title I, §103; and Sections 1.529A-0 through 1.529A-8 also issued under 26 United States Code 529A(g), 26 Code of Federal Regulations Section Pt. 1, App. 1.

Note: Authority cited: Section 4882, Welfare and Institutions Code. Reference: Sections 4875, 4877 and 4878, Welfare and Institutions Code; and Section 529 A, Internal Revenue Code.

1. New section filed 2-21-2017 as a deemed emergency pursuant to Welfare and Institutions Code section 4882(b); operative 2-21-2017 (Register 2017, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-21-2017 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 8-21-2017 as a deemed emergency pursuant to Welfare and Institutions Code section 4882(b); operative 8-21-2017 (Register 2017, No. 34). A Certificate of Compliance must be transmitted to OAL by 11-20-2017 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 8-21-2017 order transmitted to OAL 8-24-2017 and filed 10-5-2017 (Register 2017, No. 40).
4. Repealer and new section and amendment of NOTE filed 11-26-2024; operative 1/1/2025 (Register 2024, No. 48).