34 Tex. Admin. Code § 7.101 - Definitions
The following words, terms, and phrases, when used in this subchapter, shall have the following meanings.
(1) Beneficiary--The designated individual
whose qualified higher education expenses are expected to be paid from a
savings trust account.
(2)
Financial institution--A bank, trust company, savings and loan association,
credit union, broker-dealer, mutual fund, insurance company, or other similar
financial institution that is authorized to transact business in this
state.
(3) Nonqualified
withdrawal--A withdrawal from a savings trust account other than:
(A) a qualified withdrawal;
(B) a withdrawal that is made as the result
of the death or disability of the beneficiary of the account; or
(C) a withdrawal that is made as a result of
the receipt of a scholarship or an allowance or payment that is described in
Internal Revenue Code of 1986, §135(d)(1)(B) or (C), as amended, and that
the beneficiary has received, to the extent that the amount of the withdrawal
does not exceed the amount of the scholarship, allowance, or payment, in
accordance with federal law.
(4) Owner--The individual, trust, estate,
Uniform Gift to Minors Act (UGMA) custodian or Uniform Transfer to Minors Act
(UTMA) custodian, guardian, corporation, non-profit entity, or other legal
entity, or any combination thereof that results from transfers by operation of
law, that owns a savings trust account under a savings trust agreement between
the board and that individual, trust, estate, UGMA or UTMA custodian, guardian,
corporation, non-profit entity, or other legal entity, or any combination
thereof.
(5) Plan manager--A
financial institution that is under contract with the board to serve as a plan
administrator.
(6) Promotional
material, or savings plan information--Any material published or used in any
written, electronic, or other public media. For the purpose of
§7.102(e)(2) and (3), of this title (relating to General Provisions) the
term does not include:
(A) internet banner
ads that link directly to a web page that contains a link to the savings plan
description;
(B) time-limited
broadcast advertisements;
(C) press
releases distributed only to members of the media;
(D) materials and information that is not
distributed to account owners, beneficiaries, or the public; or
(E) objects, advertisements or social media
posts that include no more than the name and logo of the plan and a short
slogan that does not constitute a call to invest.
(7) Qualified higher education expenses--Has
the meaning assigned by Internal Revenue Code of 1986, §529, as amended,
and includes tuition, fees, books, supplies, and equipment that are required
for the enrollment or attendance of a beneficiary at an eligible educational
institution as defined by Internal Revenue Code of 1986, §529, as amended,
and including in certain instances the following:
(A) In the case of a special needs
beneficiary, "qualified higher education expenses" include expenses for special
needs services that are incurred in connection with enrollment or attendance of
the beneficiary at an eligible educational institution; and
(B) To the extent permitted by Internal
Revenue Code of 1986, §529, as amended, beneficiaries who live off-campus
and not at home may include in "qualified higher education expenses" a
reasonable room and board allowance as determined by the eligible educational
institution, and beneficiaries who live on campus may include in "qualified
higher education expenses" the actual invoice amount that is charged for room
and board, if that amount is greater than the allowance.
(8) Qualified withdrawal--A withdrawal from a
savings trust account to pay the qualified higher education expenses of the
beneficiary of the account.
(9)
Savings trust account--An account that an owner establishes through the savings
plan under this subchapter and Education Code, Chapter 54, Subchapter G, on
behalf of a beneficiary for the purpose of applying distributions from the
account toward qualified higher education expenses at eligible educational
institutions.
(10) Savings trust
agreement--The agreement between the owner that establishes a savings trust
account and the board, which may be amended over time.
Notes
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