Iowa Admin. Code r. 781-16.10 - Change of participant or account owner
The participant is the owner of the account and, as such, has the exclusive right to cancel the participation agreement or change the designated beneficiary in accordance with these rules and the applicable program description.
(1) A participant
may transfer the participant's current ownership rights in an account to
another eligible individual, an individual's legal representative, a trust, an
estate, or an organization described in Section 501(c)(3) of the Internal
Revenue Code and exempt from taxation under Section 501(a) of the Internal
Revenue Code or to a beneficiary. To do so, the participant shall complete the
appropriate form.
(2) A participant
may also designate a successor on the participation agreement. A participant
may change the designated successor by completing the appropriate form. The
designated successor shall succeed to the ownership of the account in the event
of the death of the participant. Upon the death of the participant, the
successor participant must notify the plan by submitting a completed
participant agreement form and a certified copy of the death certificate. The
change in ownership of the account will become effective for the successor
participant once this paperwork has been received and processed.
(3) In the event a participant or other
account owner dies and has not designated a successor to the account, the
following criteria will be used.
a. The
designated beneficiary, if 18 years of age or older, shall become the owner of
the account as well as remain the beneficiary upon filing the appropriate
forms.
b. If the designated
beneficiary is under the age of 18, account ownership will be transferred to a
surviving parent or other legal guardian of the beneficiary upon the filing of
the appropriate forms.
(4) The participant may name a successor to
the account even though the successor may already have established or may have
plans to establish a plan account.
Notes
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