Section 4001.4 - Establishment of accounts - Contributions - WithdrawalsA. The program shall be operated through the use of accounts. An account may be established to save for the qualified disability expenses of the account owner by: 1. Completing an application in the form prescribed by the Treasurer;2. Paying the one-time application fee established by the Treasurer;3. Making the minimum contribution required by the Treasurer or by opening an account; and4. Designating a single ABLE account per beneficiary, except in the case of rollovers or program-to-program transfers.B. Any person may make contributions to an account after the account is opened.C. Contributions to accounts may be made only in cash.D. Account owners may withdraw all or part of the balance from an account on sixty (60) days' notice, or a shorter period as may be authorized by the Treasurer, under rules prescribed by the Treasurer. These rules shall include provisions that will generally enable the Treasurer or program manager to determine if a withdrawal is a nonqualified withdrawal or a qualified withdrawal. The rules may, but need not, require one or more of the following:1. Account owners seeking to make a qualified withdrawal or other withdrawal that is not a nonqualified withdrawal shall provide certifications, copies of bills for qualified disability expenses or other supporting material; and2. Withdrawals not meeting certain requirements shall be treated as nonqualified withdrawals by the program manager.E. An account owner may change the designated beneficiary of an account to an individual as provided under Section 529A of the Internal Revenue Code.F. An account owner may make the changes, transfers and withdrawals described in Section 529A of the Internal Revenue Code to an account that is owned by the account owner. If a change of beneficiary or transfer causes the total account balance for all accounts under the program for the new beneficiary to exceed the maximum account balance limit, the excess amount shall be rejected and returned to the account owner as provided in Section 529A of the Internal Revenue Code.G. Each account for each designated beneficiary shall be maintained separately from each other account under the program.H. Separate records and accounting shall be maintained for each account for each designated beneficiary.I. An account owner may direct the investment of any contributions to an account or the earnings from the account only as permitted by Section 529A of the Internal Revenue Code.J. If the Treasurer terminates the authority of a financial institution to hold accounts and accounts must be moved from that financial institution to another financial institution, the Treasurer shall select the financial institution and type of investment to which the balance of the account is moved unless the Internal Revenue Service provides guidance stating that allowing the account owner to select among several financial institutions that are then contractors would not cause a plan to cease to be a qualified state tuition plan.K. No account owner may use an interest in an account as security for a loan. Any pledge of an interest in an account is of no force and effect.L. The Treasurer shall adopt guidelines and procedures to prevent contributions on behalf of a designated beneficiary in excess of those allowed pursuant to Section 529A of the Internal Revenue Code to pay the qualified disability expenses of the designated beneficiaries.M. The financial institution(s) shall make all reports and informational returns as required by the Internal Revenue Service, the Oklahoma Tax Commission and other pertinent federal and state laws and regulations.N. The program manager shall make such reports with respect to contributions, distributions and other matters that the Treasurer may require pursuant to federal and state law reporting requirements. The statement shall identify the contributions made during a preceding twelve-month period, the total contributions made through the end of the period, the value of the account as of the end of this period, distributions made during this period and any other matters that the Treasurer requires be reported to the account owner.Okla. Stat. tit. 56, § 4001.4
Added by Laws 2016 , c. 354, s. 5, eff. 1/1/2017.