N.J. Admin. Code § 9A:10-7.6

Current through Register Vol. 56, No. 11, June 3, 2024

Section 9A:10-7.6 - Cancellations and withdrawals

(a) A contributor may at any time cancel a participation agreement with the Authority by providing the Authority 60 days' notice to terminate the agreement. If the participation agreement is cancelled, the contributor is entitled to a withdrawal of contributions and earnings.

(b) Contributors may withdraw part or all of the balance from an account upon prior notice to the Authority.

(c) For qualified withdrawal of contributions and earnings from an account, a certification acceptable to the Authority must be provided that the withdrawal is for one or more of the following reasons:

1. The withdrawal is to be used for qualified higher education expenses of the designated beneficiary;

2. The withdrawal is made on account of the death or disability of the designated beneficiary; or

3. The withdrawal is made on account of a scholarship (or allowance or payment described in section 135(d)(1)(B) or (C) of the Federal Internal Revenue Code of 1986, 26 U.S.C. § 135 ) received by the designated beneficiary, but only to the extent of the amount of that scholarship, allowance or payment.

(d) All other withdrawals of contributions and earnings from an account will be considered nonqualified withdrawals, and may generate State and Federal tax consequences for either the contributor or designated beneficiary.

N.J. Admin. Code § 9A:10-7.6

Amended by R.2002 d.289, effective 9/3/2002.
See: 33 New Jersey Register 4053(a), 34 New Jersey Register 3086(a).
In (a), substituted "contributions" for "principal"; in (b), inserted "or all" following "part"; in (c), rewrote the introductory paragraph and deleted 4; added (d).
Amended by R.2003 d.343, effective 8/18/2003.
See: 35 New Jersey Register 1483(a), 35 New Jersey Register 3828(b).
Rewrote (b).