2023 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.