34 Tex. Admin. Code § 7.193 - Account Termination

(a) Voluntary termination. A participant may voluntarily terminate an ABLE account in accordance with the terms of the participation agreement and by using the procedures approved by the Board.

(b) Involuntary termination. If the Board finds a participant has made a material misrepresentation regarding personal information or eligibility on the participation agreement or in any communication regarding the Texas ABLE Program, or if the designated beneficiary is deceased, the Board may involuntarily terminate and refund any available funds of the ABLE account subject to any unpaid expenses or fees due the Program, and, if applicable, for transfer to state following the designated beneficiary's death. A material misrepresentation includes, but is not limited to, providing a false taxpayer identification number or a false certification that an individual is an eligible individual or eligible member of the family.

(c) A distribution related to account termination will be reported to the Internal Revenue Service and other state and federal agencies as required and may have adverse tax or benefit consequences to the beneficiary.

(d) In the event that available funds are refunded by the Program for involuntary account termination, to include but not limited to material misrepresentation, the Program will provide advance written or electronic notification to the 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.

Notes

34 Tex. Admin. Code § 7.193

Adopted by Texas Register, Volume 41, Number 37, September 9, 2016, TexReg 7111, eff. 9/12/2016