Missouri Code of State Regulations › Title 15 - ELECTED OFFICIALS › Division 50 - Treasurer › Chapter 4 - Missouri Education Program › Section 15 CSR 50-4.020 - Missouri Education Program

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This amendment updates the name of the
				  Missouri Education Program.
(1) Incorporation by Reference. The
				provisions of section 529 of the
Internal Revenue Code
and the
				Treasury regulations (or proposed regulations) promulgated thereunder are
				incorporated herein by reference with the same effect as if fully set forth
				herein. Section 529 of the Internal Revenue Code as amended by H.R. 5771,
				Division B. section 105, is located within Title 26 of the United States Code,
				Section 529, as published by the United States Government Printing Office, 732
				North Capitol Street, NW, Washington, DC 20401-0001, effective December 31,
				2014. This rule does not incorporate any later amendments or additions. The
				proposed regulations promulgated by the Department of the Treasury are located
				in 26 CFR Part 1, 63 FR 45019, as published by the United States Government
				Printing Office, 732 North Capitol Street, NW, Washington, DC 20401-0001,
				effective August 24, 1998. This rule does not incorporate any later amendments
				or additions.
(2) Definitions.
(A) Existing Missouri Definitions. The
				following terms, as used in this rule, are defined in section
				166.410, RSMo:
				benefits, board, eligible educational institution, Internal Revenue Code,
				participation agreement, qualified higher education expenses, qualified
				education expenses, program.
(B)
				Existing Federal Definitions. The following terms, as used in this rule, are
				defined in section 529 of the
Internal Revenue Code
or the
				Treasury regulations (or proposed regulations) promulgated thereunder:
				contribution, distributee, distribution, earnings, investment in the account,
				member of the family, qualified state tuition program.
(C) Additional Definitions. The following
				definitions shall also apply to the following terms as they are used in this
				rule:
1. "501(c)(3) organization" means an
				organization described in section 501(c)(3) of the Internal Revenue Code and
				exempt from taxation under section 501(a) of the Internal Revenue
				Code;
2. "Account" means the
				account in the program established by a participant and maintained for a
				beneficiary;
3. "Account balance"
				means the fair market value of an account on a particular date;
4. "Account owner" means-
a) a participant or
b) the transferee of an account pursuant to
				subsection (5)(H) below;
5. "Beneficiary" means a designated
				beneficiary as defined in section 529 of the Internal Revenue Code and the
				Treasury regulations (or proposed regulations) promulgated
				thereunder;
6. "Cash" shall
				include, but not be limited to, checks drawn on a banking institution located
				in the continental United States in U.S. dollars (other than cashiers checks,
				travelers checks, or third-party checks exceeding ten thousand dollars
				($10,000)), money orders, payroll deduction, and electronic funds transfers.
				Cash does not include property;
7.
				"Disability" means, with respect to a beneficiary, any disability of such
				beneficiary that has been certified pursuant to paragraph (6)(B)2.
				below;
8. "Member of the family"
				means an individual who is related to the beneficiary as listed in
				subparagraphs (2)(C)8.A. through (2)(C)8.I. of this definition, together with
				such changes to such list as may be included, from time-to-time, in the
				definition of "member of the family" pursuant to section 529 of the Internal
				Revenue Code or the Treasury regulations (or proposed regulations) thereunder:
A. A son or daughter, or a descendant of
				either;
B. A stepson or
				stepdaughter;
C. A brother, sister,
				stepbrother, or stepsister;
D. The
				father or mother, or an ancestor of either;
E. A stepfather or stepmother;
F. A son or daughter of a brother or
				sister;
G. A brother or sister of
				the father or mother;
H. A
				son-in-law, daughter-in-law, father-in-law, mother-inlaw, brother-in-law, or
				sister-in-law; or
I. The spouse of
				the designated beneficiary or the spouse of any individual de-scribed in
				subparagraphs (2)(C)8.A. through (2)(C)8.H. of this definition.
For purposes of determining who is a member of the family
				  hereunder, a legally adopted child of an individual shall be treated as the
				  child of such individual by blood, and the terms brother and sister include a
				  brother or sister by the halfblood;
9. "Non-qualified withdrawal" means a
				distribution from an account other than a qualified withdrawal, a withdrawal
				due to death, disability or scholarship of beneficiary, a rollover
				distribution, or a distribution from an account that is made after amounts are
				held in such account for the minimum length of time, if at all, permitted by
				section 529 of the
Internal Revenue Code
without the
				imposition of a penalty;
10.
				"Participant" means a person who has entered into a participation agreement
				pursuant to the statute and this rule for the payment of qualified education
				expenses on behalf of a beneficiary;
11. "Person" means any individual, estate,
				association, trust, partnership, limited liability company, corporation, the
				state of Missouri or any department thereof, or any political subdivision of
				the state of Missouri;
12.
				"Qualified withdrawal" means a distribution from an account established under
				the program used exclusively to pay qualified education expenses of the
				beneficiary;
13. "Rollover
				distribution" means a distribution or transfer from an account for a
				beneficiary that is transferred or deposited within sixty (60) days of the
				distribution into an account for another beneficiary who is a member of the
				family of the current beneficiary, in each case to the extent permitted as a
				rollover distribution, as defined in section 529(c)(3)(C)(i) of the Internal
				Revenue Code and the Treasury regulations (or proposed regulations) promulgated
				thereunder. A distribution is not a rollover distribution unless there is a
				change of beneficiary. The account for such other beneficiary may be an account
				established under the program or an account established under a qualified state
				tuition program in another state;
14. "Scholarship" means any scholarship and
				any allowance or payment described in section 135(d)(1)(B) or (C) of the
Internal Revenue Code
;
15. "Scholarship account" means an account in
				the program established by a participant that is a scholarship sponsor and
				maintained for the benefit of one (1) or more current and/or future
				beneficiaries;
16. "Scholarship
				sponsor" means the state of Missouri, an instrumentality of the state of
				Missouri, a political subdivision of the state of Missouri, or an organization
				described in section 501(c)(3) of the
Internal Revenue Code
,
				in each case who establishes one (1) or more accounts as part of a scholarship
				program;
17. "Statute" means
				sections
				166.400 to
				166.456,
				RSMo, as amended from time-to-time; and
18. "Withdrawal due to death, disability, or
				scholarship of beneficiary" means a distribution from an account established
				under the program-
a) made because of death or
				disability of the beneficiary, or
b) made because of the receipt of a scholarship by the beneficiary
				to the extent that such distribution does not exceed the amount of such
				scholarship.