Ariz. Admin. Code § R2-13-204 - Account Balance Limitations
A.
For each designated beneficiary, the balance in all qualified tuition programs,
as defined in § 529 of the Code, shall not exceed the lesser of:
1. The product (rounded down to the nearest
multiple of $1000) of 7 and the average one year's undergraduate tuition, fees,
room and board at the ten independent four year eligible educational
institutions as measured and last published by the College Board's Independent
College 500 Index that have the largest total direct charges. For purposes of
this subsection, "total direct charges" means the charges determined for each
eligible educational institution by multiplying the eligible educational
institution's undergraduate enrollment by the reported tuition, fees, room and
board for an on-campus student at the eligible educational institution;
or
2. The cost in current dollars
of qualified higher education expenses the account owner reasonably anticipates
the designated beneficiary will incur.
B. No person shall make any contribution to a
qualified tuition program during an account year that would cause the sum of
the account balances in all qualified tuition programs of the designated
beneficiary as of the first day of the account year plus contributions made
during the account year less withdrawals during the account year to or from any
such account to exceed the maximum allowable balance set forth in subsection
(A). Any excess contributions with respect to a designated beneficiary shall be
promptly withdrawn as a non-qualified withdrawal or transferred to another
account in accordance with A.R.S. §
15-1875(E) or A.R.S. §
15-1875(F).
C. No financial institution shall accept for
deposit in any account a contribution if the contribution would cause the sum
of the values (as of the beginning of an account year) of all qualified tuition
programs of the designated beneficiary that are man- aged by the financial
institution and contributions to such accounts less withdrawals from such
accounts during the account year to exceed the maximum allowable balance set
forth in subsection (A).
D. Each
year, the Board shall review the amounts set forth in subsection (A).
E. Persons making a contribution to an
account shall certify that as to the account's designated beneficiary, and to
the best of the contributor's knowledge, the contribution shall not cause the
balances in all qualified tuition programs to exceed the account balance
limitations described in subsection (A).
F. If the Treasurer determines that
contributions have been made to program accounts in violation of subsection (B)
or (C), the Treasurer shall notify the Board, the designated beneficiary and
the account owners of all accounts of such designated beneficiary. The account
owners shall have 60 days after receipt of such notice to reduce the balances
of the qualified tuition programs through distributions and/or changes in
beneficiaries to a level less than or equal to the maximum account balance
described in subsection (A). If the balances are not appropriately reduced, the
Treasurer will disqualify such accounts in reverse order of their date of
opening until the sum of the balances in the accounts does not exceed the
maximum allowable balance set forth in subsection (A). This subsection shall
not apply to any contribution made at a time when such contributions did not
cause the account balance limits to be exceeded.
Notes
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