Kansas Administrative Regulations
Agency 3 - KANSAS STATE TREASURER
Article 2 - KANSAS POSTSECONDARY EDUCATION SAVINGS PROGRAM
Section 3-2-2 - Excess contributions
Current through Register Vol. 43, No. 12, March 20, 2024
(a)
(b) The program manager shall establish adequate safeguards to prevent excess contributions. At a minimum, those safeguards shall include all of the following:
Any portion of the contribution that is determined in this manner to exceed the maximum account balance shall be an excess contribution.
(c) The program manager shall continually monitor the contributions to and aggregate balance of all the accounts for each designated beneficiary, using the following calculation:
Linked Deposit Loan Programs
If at any time the result of this calculation exceeds the maximum account balance, the program manager shall determine whether any portion of the amount in excess of the maximum account balance is attributable to contributions made during the current quarter. The program manager shall not be required to take any further action if the amount that created the excess is not attributable to current-quarter contributions. If any portion of the excess is attributable to current-quarter contributions, the program manager shall notify the account owner of each account creating the excess that excess contributions have been made on behalf of the designated beneficiary and that the excess contributions attributable to that account must be eliminated through a withdrawal or a rollover distribution.
(d) If, within 30 days of the date the notice is mailed to the account owner, the account owner does not submit a request for a withdrawal or rollover distribution in an amount sufficient to eliminate the excess contributions for that designated beneficiary, the program manager shall process withdrawal of the excess contributions from the affected account and shall forward the proceeds to the account owner.