Arkansas Administrative Code › Agency 230 - Achieving a Better Life Experience (ABLE) Program Committee › Rule 230.00.18-001 - The Arkansas Achieving A Better Life Experience program Rules and Regulations

Current through Register Vol. 49, No. 6, June, 2024
Section 1.
General
The Arkansas Achieving A Better Life Experience (ABLE) Program
			 (the "Program"), is established pursuant to the Arkansas ABLE Act, Chapter
			 3 of Title 20 of the Arkansas
			 Code, as amended, codified as Ark. Code Ann. §
								20-3-104,
			 et seq. (the "Act"). The Program is designed to satisfy the requirements of
			 Section 529 A of the Internal Revenue
			 Code of 1986, as amended, and any regulations, rulings, announcements and other
			 guidance issued thereunder (collectively referred to as "Section
			 529 "). In accordance with the
			 Act, the Section Arkansas ABLE committee (the "Committee") has established the
			 following rules and regulations governing the operation of the Program. To the
			 extent these rules and regulations are interpreted to be inconsistent with
			 provisions of Section
			 529 A, the provisions of Section
			 529 A shall prevail. The Program
			 may be affected by subsequent changes in federal and state legislation. The
			 Committee shall have the right to modify these rules and regulations from time
			 to time to comply with then current federal law and regulations applicable to
			 the Program and for other purposes. Capitalized terms not defined herein shall
			 have the meaning ascribed to them in the Act.
Section 2.
Definitions
ABLE
means the federal Achieving a
			 Better Life Experience Act of 2014 (
			 26 USC
			 529A, as amended) that creates state-level
			 tax-advantaged savings programs to assist persons with blindness or
			 disability.
ABLE Program
or Program means the
			 Arkansas ABLE Account Program administered by the State Treasurer.
ABLE Program Committee or Committee means the committee created
			 pursuant to §
								20-3-104,
			 or any successor provision thereto.
Account Application Form
means an
			 application substantially in the form approved by the Committee from time to
			 time.
Account
means an individual investment
			 account established and maintained in the ABLE Program.
Account Administrator
means the person
			 selected by the ABLE Committee to administer the daily operations of the ABLE
			 account plan and provide marketing, recordkeeping, investment management, and
			 other services for the plan.
Account Beneficiary
means the account
			 owner whose qualified expenses are expected to be paid from an account.
Administrative Expenses
means all
			 expenses associated with the implementation and administration of the ABLE
			 Program, including fees payable to third parties providing services related to
			 the plan.
Age-Based
Option
means a Portfolio the
			 assets of which are invested in a combination of Underlying Investments,
			 currently based on the ages of Designated beneficiaries specified for such
			 Portfolio.
American Arbitration Association
means a
			 non-profit provider of alternative dispute resolution services.
Approved Allocation
means the allocation
			 of assets for a Portfolio as approved by the Committee as may be set forth in
			 the Program Management Agreement.
Approved Allocation Effective Date
means
			 the annual date (July 1) by which the Approved Allocation for a Portfolio is
			 approved, as may be set forth in the Program Management Agreement.
Arkansas Administration Fee
means any
			 fee paid out of a Plan's assets to the Committee pursuant to a Program
			 Management Agreement.
Business Day
means each day on which the
			 New York Stock Exchange is open for trading.
Cash
means U.S. dollars, checks or
			 electronic funds transfers, or any other method deemed appropriate by the
			 Committee.
Code
means the Internal Revenue Code of
			 1986, as amended (
			 26
			 USC 1 et seq.).
Contracting State
means a state without
			 a qualified ABLE program that has entered into a contract with Arkansas to
			 provide residents of the contracting state access to a qualified ABLE
			 program.
County Public Guardian
means a
			 designated representative authorized by the State to act as a designated
			 representative for an account beneficiary that may not have a designated
			 representative.
Designated Representative
means a person
			 who is authorized to act on behalf of an account beneficiary.
Disability Certification
means the
			 certification described in Section 529A of the Code, Section
			 01130.740 of the Social Security
			 Administration's Program Operations Manual System, or IRS Notice
			 2015-81.
Contribution Maximum
means the maximum
			 amount that an Account owner can contribute to an all Program Accounts for the
			 same Designated beneficiary, as determined from time to time by the Committee
			 in accordance with the Achieving a Better Life Experience Program as provided
			 under the Tax Increase Prevention Act of 2014,
			 Pub. L. No.
			 113-295
Designated Beneficiary Change Form
means
			 a change of a Designated beneficiary substantially in the form approved by the
			 committee, from time to time.
Earnings
means the aggregate total of
			 all dividends and interest income received by the ABLE savings account plan at
			 any time following the plan's commencement. The aggregate total of dividends
			 and interest income shall be reduced by the aggregate total of administrative
			 expenses paid out of the pool at any time following the commencement of the
			 plan. Earnings shall be determined without regard to realized or unrealized
			 capital gains and losses incurred by the plan.
Eligible Individual
has the meaning
			 given to that term under Section
			 529 A of the Code.
Eligible Participant
means an individual
			 as defined in AR Code Title
			 20-3-103(4)
FDIC
means the Federal Deposit Insurance
			 Corporation.
Federal Guidelines
means official
			 guidance from federal agencies with jurisdiction over ABLE, specifically the
			 SSA's Program Operations Manual System (SI 01130.740) (2016) and IRS Notice
			 2015-81, "Guidance Under Section
			 529 A: Qualified ABLE Programs"
			 (80 FR 35602) (2015 ). These incorporations by
			 reference refer to the guidelines on the date specified and do not include any
			 editions or amendments subsequently to the date specified.
Investment Fund
means the portion of a
			 Plan's assets invested in underlying Investments (i.e., that portion of the
			 Plan's assets not held in the Operating Fund).
Investment Manager
means the entity
			 employed by the Program Manager to manage the assets of the Portfolios.
IRS
means the Internal Revenue
			 Service.
Management Fee
means any fee paid out of
			 a Plan's assets to the Program Manager pursuant to a written agreement approved
			 by the Committee.
MSRB
means Municipal Securities
			 Rulemaking Board and any duly established entity which succeeds to the
			 functions thereof.
Net Asset Value
means:
(1) the net asset value per share of the
		  Underlying Investments as of the market close on that Business Day;
(2) adjustments, if any, to the net asset
		  value per share of any Underlying Investments made after the market
		  close;
(3) net purchase orders and
		  net redemption orders received by the Investment Manager from the Program
		  Manager each Business Day;
(4) the
		  deduction and payment of fees and expenses from the Portfolios by the Program
		  Manager, or by the Investment Manager; and
(5) the Investment Manager's reinvestment,
		  into any Underlying Investment it or its affiliate offers and manages, of any
		  income, dividends and/or capital gain distributions paid by underlying funds.
NYSE
means the New York Stock
			 Exchange.
Operating Account
means the account
			 established for the purpose of holding the Arkansas Administration Fee.
Operating Fund
means that portion of a
			 Plan's assets not held in the Investment Fund.
Participation Agreement
means an
			 agreement to participate in the ABLE account plan between an account owner and
			 the State, through its agencies and the State Treasurer.
Plan
means the ABLE savings account plan
			 authorized by the Act.
Portfolio
means one of the Plan
			 Portfolios established within the Investment Fund to which Contributions may be
			 allocated, and that are invested in Underlying Investments.
Program Description
means the complete
			 disclosure document or set of documents describing a Plan, including any
			 supplement(s) thereto, each as amended from time-to-time, constituting an
			 "official statement" within the meaning of Rule 15c2-12 under the Securities
			 Exchange Act of 1934, as amended, and the rules of the MSRB and any successor
			 to the applicable functions thereof.