Except as specified in paragraphs (a)(2) and (a)(3), funds in a matching grant
account shall be forfeited in an amount equal to either of the following:
(A) Any nonqualified withdrawal from the
corresponding participant account; or
(B) any rollover distribution to another
qualified tuition plan from the corresponding participant account.
(2) If any nonqualified withdrawal
or rollover distribution closes a participant account, the corresponding
matching grant account shall be closed and its entire balance shall be
(3) Any account owner
who contributes more than the maximum matching grant amount may make a
nonqualified withdrawal or rollover distribution of the excess contribution
without forfeiting funds from the matching grant account.
(b) If the treasurer determines that the
account owner has made a material misrepresentation on the application, all
matching grant funds resulting from the application shall be
(c) If a participant
account ever becomes reportable as unclaimed property under
58-3934 et seq. and amendments thereto or the
unclaimed property laws of any other state, the remaining balance in the
corresponding matching grant account shall be forfeited.
(d) For participants who are enrolled in the
matching grant program on or after January 1, 2010, if the account owner
changes the beneficiary of the participant account, all funds in the
corresponding matching grant account shall be forfeited regardless of when the
matching grant was provided by the state.
All forfeited funds shall be returned to
the Kansas postsecondary education savings trust fund.
This regulation shall be effective on and after January 1,
Kan. Admin. Regs. §
Authorized by and
implementing K.S.A. 2008 Supp.
75-650, as amended by 2009 SB 225,
sec. 1; effective, T-3-6-29-06, June 29, 2006; effective Oct. 27, 2006; amended
Jan. 1, 2010.