Louisiana Administrative Code
Title 28 - EDUCATION
Part VI - Student Financial Assistance-Higher Education Savings
Chapter 7 - START K12
Section VI-713 - Deposits to Education Savings Accounts
Universal Citation: LA Admin Code VI-713
Current through Register Vol. 50, No. 9, September 20, 2024
A. Application Fee and Initial Deposit Amount
1. No application fee will be charged to
participants applying for a START K12 account directly to the LATTA.
2. Financial and investment institutions may
be authorized by the LATTA to offer assistance in establishing a START K12
account. (See fees in
§709.D 6)
3. An initial deposit is not required to open
an START K12 account; however, a deposit of at least $10 must be made within
180 days from the date on the letter of notification of approval of the
account.
4. A lump sum deposit may
not exceed the maximum allowable account balance (see §707).
B. Deposit Options
1. The account owner shall select one of the
following deposit options during the completion of the owner's agreement;
however, the account owner may change the monthly deposit amount at any time
and the payment method by notifying the LATTA:
a. occasional lump sum payment(s) made
directly to the LATTA or to a LATTA-approved investment institution;
b. monthly payments made directly to the
LATTA or to a LATTA-approved financial or investment institution;
c. automatic account debit, direct monthly
transfer from the account owner's checking or savings account to the LATTA or a
LATTA-approved investment institution;
d. payroll deduction, if available through
the account owner's employer.
2. Account owners are encouraged to maintain
a schedule of regular monthly deposits.
C. Limitations on Deposits
1. All deposits must be rendered in amounts
of at least $10 and must be made in cash, check, money order, automatic account
debit or payroll deduction, defined as any of the deposit options listed in
§713.B 1
2. Once the cumulative contributions and
earnings on contributions has reached or exceeded the maximum allowable account
balance (see §707), principal deposits will no longer be accepted to the
account until a qualified distribution is made which reduces the account
balance below the maximum allowable account balance.
D. Investment Options
1. The state treasurer shall select fixed
earnings and variable earnings investment options.
2. The authority shall furnish each account
owner with information that discloses each of the investment options offered by
the program.
3. The account owner
shall select the investment options in completing the owner's agreement,
and
4. The investment option may be
changed two times each calendar year.
5. Once a selection is made, all deposits
shall be directed to the last investment option selected.
E. Effective Date of Deposits
1. Deposits for investment options that are
limited to fixed earnings will be considered to have been deposited on the date
of receipt.
2. Deposits for
investment options that include variable earnings will be assigned a trade date
based on the method of deposit and the date of receipt.
a. Deposits by check will be assigned a trade
date three business days after the business day during which they were
received.
b. Deposits made by
electronic funds transfer through the Automated Clearing House (ACH) Network,
or its successor, will be assigned a trade date of three business days after
the business day during which they were received.
c. Deposits made by all other means of
electronic funds transfer, including deposits made by transferring funds from a
variable earnings option in which they are currently deposited to another
option, will be assigned a trade date of one business day after the business
day during which they were received.
3. Deposits for investment options that
include variable earnings which are received via check or electronic funds
transfer through the Automated Clearing House Network will be deposited into
the fixed earnings option until the trade date. Earnings accrued on these
deposits prior to the trade date shall be deposited in the Variable Earnings
Transaction Fund.
4. Deposits
received on weekends and holidays will be considered received on the next
business day.
AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3100.1 et seq.
Disclaimer: These regulations may not be the most recent version. Louisiana 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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