EDUCATION
CHAPTER 54
COLLEGE SAVINGS PROGRAM
33-5404.Program requirements. (1) The program shall be operated through
the use of accounts. An account may be opened by any person who desires
to save to pay the qualified higher education expenses of a person.
Minors may open an account which cannot be disaffirmed pursuant to
section 32-103, Idaho Code.
A person may open an account by satisfying each of the following requirements: (a) Completing
an application in the form prescribed by the board. The application
shall include the following information:
(i) The
name, address and social security number or employer identification
number of the contributor;
(ii) The
name, address and social security number of the account owner if the
account owner is not the contributor;
(iii) The name,
address and social security number of the designated beneficiary;
(iv) The
certification relating to no excess contributions required by subsection
(13) of this section;
(v) Any
other information that the board may require;
(b) Paying
the one-time application fee established by the board;
(c) Making
the minimum contribution required by the board or by opening an account;
(d) Designating
the type of account to be opened if more than one (1) type of account
is offered.
(2) Any
person may make contributions to an account after the account is opened.
(3) Contributions
to accounts may be made only in cash.
(4) 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 board, under rules prescribed by the board.
(5) An account
owner may change the designated beneficiary of an account to an individual
who is a member of the family of the former designated beneficiary
in accordance with procedures established by the board.
(6) On the
direction of an account owner, all or a portion of an account may
be transferred to another account of which the designated beneficiary
is a member of the family of the designated beneficiary of the transferee
account.
(7) Changes
in designated beneficiaries and rollovers under this section are not
permitted if the changes or rollovers would violate either of the
following provisions of this section relating to excess contributions
or to investment choice.
(8) Each
account shall be maintained separately from each other account under
the program.
(9) Separate
records and accounting shall be maintained for each account for each
designated beneficiary.
(10) No contributor
to, account owner of or designated beneficiary of any account may
direct the investment of any contributions to an account or the earnings
from the account.
(11) If the board
terminates the authority of a financial institution to hold accounts
and accounts must be moved from that financial institution to another
financial institution, the board 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 current contractors would not cause a plan to cease to be
a qualified tuition program.
(12) Neither an
account owner nor a designated beneficiary 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.
(13) The board
shall adopt rules to prevent contributions on behalf of a designated
beneficiary in excess of those necessary to pay the qualified higher
education expenses of the designated beneficiaries. The rules shall
address the following:
(a) Procedures
for aggregating the total balances of multiple accounts established
for a designated beneficiary;
(b) The
establishment of a maximum total balance that may be held in accounts
for a designated beneficiary;
(c) The
board shall review the quarterly reports received from participating
financial institutions and certify that the balance in all qualified
tuition programs, as defined in section 529 of the Internal Revenue
Code, of which that person is the designated beneficiary does not
exceed the lesser of:
(i) A maximum
college savings amount established by the board from time to time;
(ii) The cost
in current dollars of qualified higher education expenses that the
contributor reasonably anticipates the designated beneficiary will
incur;
(d) Requirements
that any excess balances with respect to a designated beneficiary
be promptly withdrawn in a nonqualified withdrawal or rolled over
to another account in accordance with this section.
(14) If there
is any distribution from an account to any person or for the benefit
of any person during a calendar year, the distribution shall be reported
to the internal revenue service and the account owner or the designated
beneficiary to the extent required by federal law.
(15) The financial
institution shall provide statements to each account owner at least
once each year within thirty-one (31) days after the twelve (12) month
period to which they relate. The statement shall identify the contributions
made during a preceding twelve (12) 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 board requires be reported to the account
owner.
(16) Statements
and information returns relating to accounts shall be prepared and
filed to the extent required by federal or state tax law.
(17) A state or
local government or organization described in section 501(c)(3) of
the Internal Revenue Code may open and become the account owner of
an account to fund scholarships for persons whose identity will be
determined after an account is opened.
(18) In the case
of any account described in subsection (17) of this section, the requirement
that a designated beneficiary be designated when an account is opened
does not apply and each person who receives an interest in the account
as a scholarship shall be treated as a designated beneficiary with
respect to the interest.
(19) Any social
security numbers, addresses or telephone numbers of individual account
holders and designated beneficiaries that come into the possession
of the board are confidential, are not public records and shall not
be released by the board.
Idaho Statutes