New York Codes, Rules and Regulations
Title 2 - DEPARTMENT OF AUDIT AND CONTROL
Chapter IV - Miscellaneous Rules
Part 156 - The New York Achieving A Better Life Experience Savings Account Act
Section 156.2 - Definitions
Universal Citation: 2 NY Comp Codes Rules and Regs ยง 156.2
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Unless otherwise defined, the terms used herein shall have the same meaning as used in the program disclosure booklet for the Pro gram, as now in effect or hereafter amended (the program disclosure booklet), which describes the Program's operation and financial information and serves as the Program's offering document. The program disclosure booklet can be obtained from the program manager selected by the Comptroller pursuant to Article 84 of the Mental Hygiene Law.
(b) The following terms used herein shall have the meanings set forth below:
(1) "Account" or "NY ABLE account" means an
individual savings account established in accordance with section 529A of the
Code.
(2) Account owner means a
person who opens an account pursuant to section 529A of the Code. The account
owner must be the designated beneficiary of the account, and an account owner
may own only one account.
(i) Establishment of
ABLE account. In accordance with federal regulations adopted under section 529A
of the Internal Revenue Code, an account may be established by the following
persons, in order of priority of authority:
(A) the eligible individual;
(B) a person selected by the eligible
individual; or
(C) if an eligible
individual is unable to establish an account on his or her own behalf, the
account may be established on behalf of the eligible individual by the
following:
(1) the eligible individual's
agent under a power of attorney;
(2)
the eligible individual's legal guardian;
(3) the eligible individual's
spouse;
(4) the eligible
individual's parent;
(5) the
eligible individual's sibling;
(6) a
grandparent of the eligible individual; or
(7) a representative payee appointed for the
eligible individual by the Social Security
Administration.
(ii) The person seeking to establish an ABLE
account on behalf of an eligible individual shall certify, under penalty of
perjury:
(A) the basis of such person's
authority to establish such account; and
(B) that there is no other person with higher priority
pursuant to the hierarchy described in (b)(2)(i) above to establish the
account.
(3)
Designated beneficiary means, with respect to an account, any individual who is
an eligible individual as defined under section 529A(e)(1) of the Code, who
establishes an ABLE account, is the owner of such account, and whose qualified
expenses are expected to be paid from the account. A designated beneficiary
shall be a resident of New York State or a resident of a state that does not
have a qualified ABLE program recognized under section 529A of the Code and
such state has entered into a contract with New York State to provide residents
of the contracting state with access to New York State's ABLE Program.
(i) Signature authority over account. In
general, the designated beneficiary will have authority over his or her ABLE
account; however, if an individual other than the designated beneficiary
establishes the account pursuant to paragraphs 2(i)(B) and 2(i)(C) above, then
such individual shall have signature authority and may select a co-signatory.
If cosignatories are selected, such co-signatories may act separately or
jointly.
(ii) Successor signature
authority. The designated beneficiary may remove and replace any person with
signature authority over such account and may designate a successor to the
person with signature authority. If the designated beneficiary does not
designate a successor to the person with signature authority, the person with
signature authority over the account may designate such a successor, consistent
with the order of priority in paragraph (b)(2)(i) above.
(iii) Change in designated beneficiary. In
accordance with federal regulations adopted under section 529A of the Internal
Revenue Code, the designated beneficiary of an account may be changed (A)
during the life of the original designated beneficiary, or (B) to take effect
upon the death of the original designated beneficiary. If the change in
designated beneficiary becomes effective upon the death of the original
designated beneficiary, the amount of account assets to be transferred pursuant
to such change is first subject to payment of any qualified disability expenses
incurred but not paid and to post death payments as defined in section 529A of
the Internal Revenue Code and related regulations.
(4) "Nonqualified withdrawal" means a
distribution from an account which is not:
(i) a distribution made to a designated
beneficiary for qualified expenses;
(ii) a distribution made to a designated
beneficiary or to his or her estate on or after his or her death for qualified
expenses incurred prior to or as a result of the death of the designated
beneficiary; or
(iii) a
distribution made to a designated beneficiary who is no longer an eligible
individual.
(5)
"Qualified expenses" mean any qualified disability expense defined in section
529A (e)(5) of the Code, or in any regulations promulgated thereunder. Examples
of types of qualified disability expenses include, but are not limited to, the
following: education, housing, transportation, employment training and support,
assistive technology and personal support services, health, prevention and
wellness, financial management and administrative services, legal fees, and
expenses for oversight and monitoring, which are incurred during the lifetime
of the designated beneficiary, and funeral and burial expenses of the
designated beneficiary.
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