us-tx/regs
34 Tex. Admin. Code § 7.183 — Participation Agreement
(a)
The Board will designate the start date of the Texas ABLE Program. The Board may begin enrolling participants as soon as reasonably practical to allow sufficient time for successful development and implementation of the Program. To enroll in the Program, a participant shall enter into a participation agreement with the Board to establish an ABLE account for an Eligible Individual.
(b)
The participation agreement may include, but is not limited to, the following terms:
(1) the requirements and applicable restrictions for:
(A) opening an ABLE account;
(B) making contributions to an ABLE account; and
(C) limiting the directing of the investment of contributions, earnings, or balance of the account, as provided under Internal Revenue Code, §529A.
(2) The eligibility requirements for a participant to enter into a participation agreement and the rights of the participant and designated beneficiary, if other than the participant;
(3) administrative and other fees and charges applicable to the ABLE account;
(4) the terms and conditions under which an ABLE account or participation agreement may be modified, transferred, or terminated; and
(5) any other terms and conditions the Board considers necessary or appropriate, including those necessary to conform the ABLE account to the requirements of Internal Revenue Code, §529A and other applicable state or federal laws or requirements.
(c)
The participant must provide the following information on the participation agreement:
(1) the name, address, social security number or tax identification number, telephone number, relationship to beneficiary, and email, if any, of the participant;
(2) the name, address, date of birth, and social security number of the designated beneficiary;
(3) an eligibility certification in a format approved by the Board or required by state or federal regulations or guidance to self-certify that the designated beneficiary is an eligible individual;
(4) directions related to investment of account contributions and earnings, if any;
(5) acceptance of the terms and conditions of the Texas ABLE Program, including any subsequent modifications, transfers, amendments, or terminations;
(6) acceptance of any fees and charges applicable to a Texas ABLE account;
(7) acceptance of the terms under which another person may be substituted as the designated beneficiary;
(8) acceptance of the terms under which another person may be substituted as the participant;
(9) acceptance of the calendar year as the taxable year for purposes of the Program;
(10) a certification under penalty of perjury that, unless the participant is also the designated beneficiary, the participant does not have and will not acquire a beneficial interest in the ABLE account and that the participant will administer the account for the benefit of the designated beneficiary; and
(11) any other information required by the Board.
(d)
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, the Board may refund the balance of any available funds in the ABLE account subject to any unpaid expenses or fees due the Program and, if applicable, transfer to state following the designated beneficiary's death.
(e)
The Board may amend a participation agreement throughout the term of the agreement.
(f)
The participant is responsible for maintaining up-to-date contact information for the ABLE account.
(g)
The terms of the participation agreement shall be binding on the designated beneficiary and participant.
(h)
The rights of participants and designated beneficiaries are subject to the provisions of these rules; Education Code, Chapter 54, Subchapter J; Internal Revenue Code, §529A; and the terms and conditions of the participation agreement. To the extent of irreconcilable conflict, the provisions of Internal Revenue Code, §529A; Education Code, Chapter 54, Subchapter J; and these rules prevail over the participation agreement.
(i)
Any amendment to Internal Revenue Code, §529A; Education Code, Chapter 54, Subchapter J; or these rules that would apply to a participation agreement, will automatically govern over the participation agreement to the extent of any conflict, and the participation agreement will be automatically amended to accommodate such changes. The Board shall provide prompt notification to participants of any such amendments in written or electronic form as determined by the Board.
Source Note: The provisions of this §7.183 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective April 9, 2018, 43 TexReg 2165.
Source: official text