NY Ment Hygiene L § 84.09 (2021)
2021 New York Laws MHY - Mental Hygiene Title E - General Provisions Article 84 - New York Achieving a Better Life Experience Savings Account Act 84.09 - Program Requirements.

§ 84.09 Program requirements.   1.  "NY  ABLE" accounts established pursuant to the provisions of this article shall be governed by the provisions of this section.   2. (a) An application for a NY ABLE  account  shall  be  in  the  form prescribed by the program and contain the following:  (i)   the  name,  address  and  social  security  number  or  employer identification number of the account owner;  (ii) the designation of a designated beneficiary;  (iii) the name, address and social security number of  the  designated beneficiary; and  (iv) such other information as the program may require.  (b) The comptroller may establish a nominal fee for such application.   3.  An account owner may own only one NY ABLE account unless otherwise permitted by section 529A of the  Internal  Revenue  Code  of  1986,  as amended.   4.  Any person, including the account owner, may make contributions to the account after the account is opened.   5. Contributions to accounts may be made only in cash.   6. Contributions to a NY ABLE account shall not exceed  the  limit  on annual  contributions  established under paragraph (2) of subsection (b) of section 529A of the Internal Revenue Code of 1986, as amended.   7. An account owner may withdraw all or part of the  balance  from  an account on sixty days notice or such shorter period as may be authorized under  rules  governing the program. Such rules shall include provisions that will generally enable the determination as to whether a  withdrawal is  a  nonqualified  withdrawal  or a qualified withdrawal. Nonqualified withdrawals shall be subject to any penalties imposed under section 529A of the internal revenue code of 1986, as amended.   8. An account owner  may  change  the  designated  beneficiary  of  an account  to  another beneficiary only as permitted under section 529A of the Internal Revenue Code.   9. The program shall provide a separate accounting for each designated beneficiary.   10. An account owner shall be permitted to direct  the  investment  of any contributions to an account or the earnings thereon no more than two times in a calendar year.   11.  Neither  an account owner nor a designated beneficiary may use an interest in an account as security for a loan. Any pledge of an interest in an account shall be of no force and effect.   12. The comptroller shall promulgate rules or regulations  to  prevent contributions  on  behalf  of  a  designated beneficiary in excess of an amount that would cause the aggregate account balance for  all  accounts for  a  designated  beneficiary  to exceed a maximum account balance, as established from time to time by the comptroller.  Such  maximum  amount shall  reflect  reasonable  expenditures  and  shall  be  determined  in accordance  with  any  applicable  state  or  federal  law,   rule,   or regulation.   Such   maximum  amount  shall  not  exceed  the  federally authorized level of contribution established for the  New  York  college choice  tuition  savings  program pursuant to subdivision ten of section six  hundred  ninety-five-e  of  the  education  law  unless   otherwise permitted by law.   13. (a) If there is any distribution from an account to any individual or  for  the  benefit  of  any  individual  during a calendar year, such distribution shall be reported to the Internal Revenue Service  and  the account  owner,  the  designated  beneficiary, or the distributee to the extent required by federal law or regulation.  (b) Statements shall be provided to each account owner at  least  once each  year within sixty days after the end of the twelve month period to  which they relate. The statement shall identify the  contributions  made during  a preceding twelve month period, the total contributions made to the account through the end of the period, the value of the  account  at the  end  of  such period, distributions made during such period and any other information that the comptroller shall require to be  reported  to the account owner.  (c)  Statements and information relating to accounts shall be prepared and filed to the extent required by federal and state tax law.   14. The program shall disclose the following information in writing to each account owner and prospective account owner of a NY ABLE account:  (a) the terms and conditions for purchasing a NY ABLE account;  (b) any restrictions on the substitution of beneficiaries;  (c) the person or entity entitled to terminate the savings agreement;  (d) the period of time during which a beneficiary may receive benefits under the savings agreement;  (e) the terms and conditions  under  which  money  may  be  wholly  or partially withdrawn from the program, including, but not limited to, any reasonable charges and fees that may be imposed for withdrawal;  (f) the probable tax consequences associated with contributions to and distributions from accounts; and  (g)  all  other  rights  and  obligations  pursuant to NY ABLE savings agreements, including but not limited to the potential impact  on  means tested  programs,  that  upon the death of the beneficiary any remaining balance may be subject to state recovery for Medicaid payments  and  any other terms, conditions, and provisions deemed necessary and appropriate by the commissioner, the advisory council, and the comptroller.   15.  NY ABLE savings agreements shall be subject to section fourteen-c of the banking law and the  "truth-in-savings"  regulations  promulgated thereunder.   16.  Notwithstanding  any other provisions of law, rule, or regulation to the contrary, assets  contained  in  NY  ABLE  account,  that  is  in compliance  with  all  applicable  state  and  federal  laws, rules, and regulations, shall not be used  in  determining  the  eligibility  of  a designated  beneficiary  for  any  federal, state, or local means-tested program.   17. Subject to any outstanding payments due for  qualified  disability expenses,  upon  the  death  of  the designated beneficiary, all amounts remaining will be subject  to  state  recovery  for  medical  assistance payments   made   on  behalf  of  the  beneficiary  after  the  date  of establishment of the account.   18. Nothing in this article shall create or be construed to create any obligation  of  the  comptroller,  the   state,   or   any   agency   or instrumentality of the state to guarantee for the benefit of any account owner or designated beneficiary with respect to:  (a) the rate of interest or other return on any account; and  (b) the payment of interest or other return on any account.