Or. Admin. R. 461-145-0145 - Educational Account
(1) The
Individual Education Account (IEA) is an asset accrued by JOBS Plus
participants. The IEA is excluded while it accumulates, while it is saved, and
when it is withdrawn for educational purposes.
(2) For purposes of this rule, "educational
expenses" are tuition, fees, and other necessary expenses for education at any
educational institution. Examples of other necessary expenses for education
include books, laboratory fees, student activity fees, transportation,
stationary supplies, technology fees, and impairment-related expenses necessary
to attend school or perform schoolwork (such as special prosthetic devices
necessary to operate school machines or equipment). "Educational expenses" do
not include the cost of shelter.
(3) In the OSIP, OSIPM, and QMB-DW programs:
(a) Funds in a Qualified Tuition Programs
under Section 529 of the Internal Revenue Code are treated as follows:
(A) They are a countable
(see OAR 461-001-0000) resource to the individual who owns the
account.
(B) They are excluded as a
resource for the beneficiary, unless the beneficiary is also the
owner.
(b) Funds in a
Coverdell Education Savings Accounts are treated as follows:
(A) They are excluded as a resource to the
designated beneficiary.
(B) If the
contributor is not a designated beneficiary, funds deposited into the account
are no longer the resource of the contributor beginning with the month after
the month the cash is transferred. The transfer may be considered a
disqualifying transfer of resources by the contributor under OAR 461-140-0210
and 461-140-0220.
(c)
Distributions from a Coverdell Education Savings Account to a designated
beneficiary are treated as follows:
(A)
Educational expenses (see section (2) of this rule) are
excluded as income in the month of receipt.
(B) If the excluded distribution is retained
into the month following the month of receipt, it is excluded as a resource for
nine months beginning with the month after the month of receipt.
(C) If the beneficiary spends any portion of
a distribution for a purpose other than the educational expenses
of the beneficiary, or no longer intends to use the funds for the
educational expenses of the beneficiary, the non-education
portion of the funds is countable as unearned income at the
earlier of the following:
(i) The month the
funds are spent.
(ii) The month the
beneficiary no longer intends to use the funds for educational
expenses.
(D)
If a countable distribution is retained into the month
following the month of receipt, it is a countable resource of
the designated beneficiary. See OAR 461-145-0150 for information on other types
of educational income.
(d) Gifts that are set aside to pay
educational expenses are treated in accordance with subsection
(c) of this section, except that the exclusion does not apply to any portion
set aside or actually used for food or shelter. See OAR 461-145-0150 for
information on other types of educational income.
(4) In the QMB-BAS, QMB-SMB, and QMB-SMF
programs:
(a) Funds held in a Qualified
Tuition Program under Section 529 of the Internal Revenue Code or a Coverdell
Education Savings Accounts are excluded as a resource.
(b) Distributions from a Coverdell Education
Savings Account to a designated beneficiary are treated as follows:
(A) They are excluded as income in the month
of receipt.
(B) If the excluded
distribution is retained following the month of receipt, it is excluded as a
resource.
(C) If the beneficiary
spends any portion of a distribution for a purpose other than the
educational expenses of the beneficiary, or no longer intends
to use the funds for the educational expenses of the
beneficiary, the non-education portion of the distribution is
countable as unearned income at the earlier of the following:
(i) The month the funds are spent.
(ii) The month the beneficiary no longer
intends to use the funds for educational expenses.
(5) In the SNAP
program, the value of funds in a qualified tuition program under section 529 of
the Internal Revenue Code or in a Coverdell education savings account is
excluded.
Notes
Statutory/Other Authority: ORS 329A.500, 409.050, 411.060, 411.404, 411.816, 413.085, 414.025 & 414.685
Statutes/Other Implemented: ORS 329A.500, 409.010, 411.060, 411.404, 411.816, 413.085, 414.025 & 414.685
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