Current through Register Vol. 56, No. 18, September 16, 2024
(a) The program shall be operated as a trust through the use of accounts for designated beneficiaries. An account may be opened by any person who desires to save to pay the qualified higher education expenses of a person by satisfying each of the following requirements:
1. Completing an application in the form prescribed by the Authority and thereby entering into a participation agreement with the Authority. The application shall include identifying information about the contributor, the successor contributor, if any, and the designated beneficiary, information about the amount and method of contribution, and residency information if applicable;
2. Making the minimum contribution required by the Authority for opening an account, which shall be $ 25.00;
3. Indicating the account or accounts to be opened; and
4. If the investment manager is the Division of Investment in the Department of the Treasury, demonstrating to the satisfaction of the Authority that either the contributor, if an individual, or the designated beneficiary is a New Jersey resident. Residence is defined in terms of domicile. Domicile is defined as the place where a person has his or her true, fixed, permanent home and principal establishment, and to which, whenever he or she is absent, he or she has the intention of returning. Documents providing evidence of residency include but are not limited to: driver's license, voter registration form, tax return(s). If the investment manager is not the Division of Investment in the Department of the Treasury, the requirement of New Jersey residency for either the contributor or the designated beneficiary would not apply unless otherwise determined by the Authority.
(b) A "scholarship account" may be opened by any state or local government (or agency or instrumentality thereof) or an organization described in section 501(c)(3) of the Federal Internal Revenue Code of 1986, 26 U.S.C. §
501, and exempt from taxation under section 501(a) of the Federal Internal Revenue Code for a designated beneficiary as part of a scholarship program operated by such government or organization. The designated beneficiary shall receive this interest in the program as a scholarship.
1. The designated beneficiary of a scholarship account opened pursuant to (b) above need not be identified until such time as a withdrawal is made from the account.
2. The requirements for opening an account in (a)1 through 3 above must also be met when opening a "scholarship account" with the exception that the designated beneficiary need not be identified until a withdrawal is made.
