Iowa Administrative Code
Agency 781 - Treasurer of State
Chapter 16 - Iowa Educational Savings Plan Trust
Rule 781-16.7 - Program Administrator Rights and Responsibilities
Universal Citation: IA Admin Code 781-16.7
Current through Register Vol. 47, No. 6, September 18, 2024
(1) The program administrator reserves the right to:
a. Freeze an account or suspend account
services or do both when a plan has received reasonable notice of a dispute
regarding the assets in an account, including notice of a dispute in account
ownership or when the plan reasonably believes a fraudulent transaction may
occur or has occurred;
b. Freeze an
account or suspend account services or do both upon the notification to the
plan of the death of a participant until the plan receives required
documentation in good order and reasonably believes that it is lawful to
transfer the account ownership to the successor participant;
c. Redeem an account, without the
participant's permission, in cases of threatening conduct or suspicious,
fraudulent, or illegal activity; and
d. Reject a contribution for any reason,
including contributions that the plan believes are not in the best interests of
the plan, a portfolio, or the participants.
(2) The risk of market loss, tax implications, penalties, and any other expenses, as a result of such an account freeze, account redemption, or contribution rejection, will be solely the participant's responsibility.
(3) The contractor will provide each participant a fourth-quarter statement. In addition, the program administrator will provide each participant that had an account with either contributions or withdrawals in the first, second, or third quarter with a quarterly statement for that account.
Disclaimer: These regulations may not be the most recent version. Iowa may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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