La. Admin. Code tit. 28 § VI-715

Current through Register Vol. 50, No. 9, September 20, 2024

Section VI-715 - Disbursement of Account Funds for Payment of Qualified Education Expenses of a Beneficiary

A. Request for Disbursement

1. For each term the account owner intends to fund the beneficiary's qualified education expenses, the account owner shall submit a request for disbursement.

2. The request for disbursement must include:

a. the START K12 account number;

b. the account owner's name, address, and signature (may be electronic);

c. the beneficiary's name and address;

d. the amount to be disbursed and to whom; and

e. the name and address of the eligible educational institution.

3. In the event funds are invested in more than one investment option, the disbursement shall be made proportionally from each investment option in the account.

4. If there is more than one account with the same beneficiary, each account owner requesting a disbursement must complete a request for disbursement and the disbursements shall be made from each account, in turn, in the order the disbursement requests were received.

B. Disbursements from all accounts with the same beneficiary shall not exceed $10,000 in one calendar year.

C. Disbursements shall be made to the account owner. If LOSFA determines that the beneficiary is not enrolled in an eligible educational institution during the semester or term for which the disbursement was intended, LOSFA shall notify the account owner that the disbursement will constitute a refund for state and federal income tax purposes unless returned to the START K12 account. If the disbursement is not returned to the account within 60 days of the original notice, LOSFA, in the authoritys sole discretion, may refund any balance remaining thereafter and close the account.

D. Disbursements from investment options with variable earnings shall be assigned a trade date of one business day after the business day of receipt of the transfer request.

La. Admin. Code tit. 28, § VI-715

Promulgated by the Tuition Trust Authority, Office of Student Financial Assistance, LR 441883 (10/1/2018), Amended LR 451177 (9/1/2019).

AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3100.1 et seq.