Tenn. Comp. R. & Regs. 1700-08-01-.07 - ACCOUNT MAINTENANCE

(1) Update ABLE Account Information. Any Designated Beneficiary or Designated Beneficiary's Legal Representative may make changes and updates to the ABLE Account information as needed. These changes include updates to the following, including, but not limited to, addresses; legal name changes; phone numbers; email addresses and changes in the Designated Beneficiary's Legal Representative. The requested changes shall be provided in writing to the State on a form prescribed by the State, either in hard copy or electronic form.

(2) ABLE Account Limitations.

(a) Except in the case of Rollovers or Program-to-Program Transfers, a Designated Beneficiary is limited to one (1) ABLE Account at a time, regardless of where the account is located. Except in the case of Rollovers and Program-to-Program Transfers, if an ABLE Account is established for a Designated Beneficiary who already has an ABLE Account in existence, the State shall not treat the additional account as an ABLE Account; however, as long as the State returns all Contributions (including all net income attributable to the Contribution) to the Person or Persons who/that made the Contribution, then the additional account will be treated as never having been established.

(b) The funds (contributions, earnings and funds distributed for housing expenses as defined by the Social Security Administration) in a Designated Beneficiary's ABLE Account at any one time shall not exceed one hundred thousand dollars ($100,000.00) should the Designated Beneficiary participate in the Supplement Security Income program under title XVI of the Social Security Act.

(3) Change in Designated Beneficiary. A Designated Beneficiary may be changed on an ABLE Account and the transferred moneys will not be treated as a Distribution subject to federal taxation as long as the new Designated Beneficiary is an Eligible Individual within the taxable year that the change occurs and the new Designated Beneficiary is a Member of the Family of the former Designated Beneficiary. A change in the Designated Beneficiary of an ABLE Account shall only occur during the life of the Designated Beneficiary, and at the time of the change, the successor Designated Beneficiary must be an Eligible Individual.

(4) Eligible Individual Recertification. At the request of the State, each Designated Beneficiary shall recertify to the State that he or she meets the definition of an Eligible Individual. Each Designated Beneficiary or Designated Beneficiary's Legal Representative shall promptly report any changes in the Designated Beneficiary's status as an Eligible Individual. Should a Designated Beneficiary no longer meet the definition of an Eligible Individual at any time during which the Designated Beneficiary has an ABLE Account, the Designated Beneficiary shall maintain his or her status as an Eligible Individual until the end of the taxable year in which the change in the Designated Beneficiary's condition occurred. On the first day of the subsequent taxable year in which the Designated Beneficiary does not meet the definition of an Eligible Individual, the State shall not accept additional contributions into the ABLE Account and the existing money in the ABLE Account shall not be used for qualified disability expenses. Should a Designated Beneficiary subsequently meet the definition of an Eligible Individual, the State shall accept contributions into the Designated Beneficiary's ABLE Account and the existing funds in the ABLE Account can be used to pay for qualified disability expenses.

(5) Investment Direction. Any Designated Beneficiary or Designated Beneficiary's Legal Representative may, directly or indirectly, direct the investment of any Contributions to the Program, or any earning thereon, no more than two (2) times in any calendar year.

Notes

Tenn. Comp. R. & Regs. 1700-08-01-.07

Original rule filed October 8, 2015; effective January 6, 2016. Amendments filed December 4, 2018; effective 3/4/2019.

Authority: T.C.A. §§ 71-4-804(b); 71- 4-805; 71- 4-806; 71- 4-807; and Chapter 470 of the 2015 Public Acts.