37.2.521    DEFINITIONS

The following definitions, found in 53-25-103, MCA, apply to this subchapter:

(1) "Account" means an eligible participating account established under Title 53, chapter 25, MCA, by or on behalf of an eligible individual.

(2) "Account owner" means the designated beneficiary of the account.

(3) "Annual contribution limit" means the limit established in section 529A(b)(2) of the Internal Revenue Code, 26 U.S.C. 529A(b)(2).

(4) "Application" means a form executed by or on behalf of a prospective account owner to enter into a participating trust agreement and open an account. The application incorporates the participating trust agreement by reference.

(5) "Committee" means the achieving a better life experience program oversight committee established in 53-25-105, MCA.

(6) "Contribution" means a payment to an account for the benefit of a designated beneficiary.

(7) "Department" means the Department of Public Health and Human Services provided for in 2-15-2201, MCA.

(8) "Designated beneficiary" means the eligible individual on whose behalf an account is established.

(9) "Eligible individual" means an eligible individual as defined in section 529A(e)(1) of the Internal Revenue Code, 26 U.S.C. 529A(e)(1).

(10) "Financial institution" means a bank, commercial bank, national bank, savings bank, savings and loan association, credit union, insurance company, trust company, investment adviser, or other similar entity that is authorized to do business in this state.

(11) "Investment products" means, without limitation, certificates of deposit, savings accounts paying fixed or variable interest, financial instruments, one or more mutual funds, and a mix of mutual funds.

(12) "Member of the family" means, with respect to a designated beneficiary, a member of the family of the designated beneficiary as defined in section 529A(e)(4) of the Internal Revenue Code, 26 U.S.C. 529A(e)(4).

(13) "Nonqualified withdrawal" means a withdrawal from the account that is not:

(a) a qualified withdrawal;

(b) a withdrawal made as the result of the death of the designated beneficiary of an account; or

(c) a rollover distribution or a change of designated beneficiary described in 53-25-111, MCA.

(14) "Participating trust agreement" means an agreement between an account owner and the department or its designee that creates a trust interest in the trust and provides for participation in the program.

(15) "Program" means the Montana achieving a better life experience program provided for in 53-25-101, et seq., MCA and authorized under section 529A of the Internal Revenue Code, 26 USC 529A.

(16) "Program manager" means a financial institution that acts as an agent of the trust as provided in 53-25-112, MCA.

(17) "Qualified disability expenses" means qualified disability expenses as defined in section 529A(e)(5) of the Internal Revenue Code, 26 USC 529A(e)(5).

(18) "Qualified withdrawal" means a withdrawal from an account to pay the qualified disability expenses of the beneficiary of the account. A qualified withdrawal may be made by the beneficiary, by an agent of the beneficiary who has a power of attorney for the beneficiary, or by the beneficiary's legal guardian.

(19) "Rollover distribution" means a transfer of funds made:

(a) from one account in another state's qualified program to an account for the benefit of the same designated beneficiary or an eligible individual who is a family member of the former designated beneficiary; or

(b) from one account to another account for the benefit of an eligible individual who is a family member of the former designated beneficiary.

(20) "Trust" means the achieving a better life experience savings trust as provided in 53-25-121, MCA.

(21) "Trustee" means the department in its capacity as trustee of the trust.

History: 53-25-104, MCA; IMP, 53-25-103 MCA; NEW, 2016 MAR p. 1575, Eff. 9/3/16.