405 Ind. Admin. Code 2-3-25

Current through November 29, 2023
Section 405 IAC 2-3-25 - College savings accounts

Authority: IC 12-13-7-3; IC 12-15-1-10

Affected: IC 12-15-3-8; IC 21-9-2-2; IC 21-9-2-11

Sec. 25.

(a) Subject to subsection (b) and any applicable federal law, any money deposited in an account (as defined in IC 21-92-2 ) of an education savings program (as defined in IC 21-9-2-11) may not be considered as a resource or asset in determining an applicant's or recipient's eligibility for Medicaid.
(b) Any money withdrawn from an account described in subsection (a) shall be used for eligible educational expenses, as determined by 26 U.S.C. 529, for the designated beneficiary.
(c) Any money withdrawn from an account described in subsection (a) that is not used in accordance with subsection (b) may be considered one (1) of the following:
(1) An invalid transfer subject to a penalty as described in section 1.1 of this rule.
(2) A converted resource countable in the month of the withdrawal unless the converted resource is otherwise exempt.

405 IAC 2-3-25

Office of the Secretary of Family and Social Services; 405 IAC 2-3-25; filed 6/11/2021, 2:35 p.m.: 20210707-IR-405190602FRA