34 Tex. Admin. Code § 7.187 - Contributions

(a) Any person may make contributions to an ABLE account for a taxable year, for the benefit of a designated beneficiary who is an eligible individual for such taxable year. Any contributions to an ABLE account, excluding any excess contributions, are an asset of the account for the benefit of the designated beneficiary.

(b) No contributions will be accepted for an ABLE account unless:

(1) the contribution is in U.S. dollars in the form of a check, money order, cashier's check, automatic contribution plan, ACH, including SSI or SSDI electronic deposits to the extent allowable by law, or payroll deduction;

(2) the designated beneficiary is an eligible individual during the taxable year; and

(3) such contribution is not an excess contribution as defined in these rules.

(c) Any contributions to an ABLE account on behalf of a designated beneficiary may be subject to any applicable Internal Revenue Service gift tax rules in effect at the time of the contribution, as provided by Internal Revenue Code, §529A.

(d) Excess contributions to an ABLE account will be rejected and refunded automatically to the contributor making the excess contribution after obtaining the taxpayer identification number of the contributor if required by federal law. In the event that excess contributions are refunded by the Program to the beneficiary or to the participant on behalf of the beneficiary, the Program will provide advance written or electronic notification to the beneficiary or participant of a pending refund within a reasonable time, but not less than thirty (30) days if allowed by state or federal law, prior to the refund by the Program.

(e) Any contributions returned for any of the above reasons will not include earnings or interest.

(f) Informational materials used in connection with a contribution to an ABLE account must clearly indicate that the account is not insured by this state and that neither the principal deposited nor the investment return is guaranteed by the state.

Notes

34 Tex. Admin. Code § 7.187

Adopted by Texas Register, Volume 41, Number 37, September 9, 2016, TexReg 7111, eff. 9/12/2016; Amended by Texas Register, Volume 43, Number 14, April 6, 2018, TexReg 2165, eff. 4/9/2018; Amended by Texas Register, Volume 48, Number 24, June 16, 2023, TexReg 3300, eff. 6/22/2023