C.R.S. Section 23-3.1-306
Accounts

  • contributions
  • withdrawals
  • penalties
  • statements

(1)

The program shall be operated through the use of accounts. A person may open an account by satisfying each of the following requirements:

(a)

Completing an application in the form prescribed by the financial institution and approved by the authority, and in accordance with the provisions of section 529 or 529A of the internal revenue code, whichever is applicable. At a minimum, said application shall include the following information:

(I)

The name, address, and social security number or employer identification number of any person that contributes to the account;

(II)

The name, address, and social security number or employer identification number of the account owner;

(III)

The name, address, social security number or employer identification number, and date of birth of the designated beneficiary;

(III.5)

For the ABLE savings program, a disability certificate and other documentation as required pursuant to section 529A of the internal revenue code; and

(IV)

Repealed.

(V)

Any other information that the authority may deem necessary.

(b)

Making the minimum contribution required by the financial institution to open an account.

(2)

Any person may make contributions to an account, consistent with the terms established by the authority, after the account is opened.

(3)

Contributions to accounts shall be made in cash only, unless otherwise permitted pursuant to section 529 or 529A of the internal revenue code.

(4)

Account owners may withdraw all or part of the balance from an account upon giving sixty days’ notice, or upon such shorter period as may be authorized by the authority pursuant to rules established by the authority, including any applicable fees and penalties.

(5)

An account owner may change the designated beneficiary of an account in accordance with the provisions of section 529 or 529A of the internal revenue code, whichever is applicable, and the procedures established by the authority.

(6)

At the direction of the account owner, all or a portion of an account may be transferred to another account or rolled over in accordance with the provisions of section 529 or 529A of the internal revenue code, whichever is applicable, and the procedures established by the authority.

(7)

to (9) Repealed.

(10)

Each account shall be accounted for separately from all other accounts under the program.

(11)

Separate records and accounting shall be maintained for each account for each designated beneficiary.

(12)

To the extent permitted by federal law, a contributor to, an account owner of, or a designated beneficiary of any account may direct the investment of any contribution to an account or the earnings from the account.

(13)

If the authority terminates the contract of a financial institution to hold accounts and accounts must be moved from that financial institution to another financial institution, the authority shall select the financial institution to which the balances of the accounts are moved.

(14)

Neither an account owner nor a designated beneficiary may use an interest in an account as a security for a loan. Any pledge of an interest in an account is of no force and effect.

(15)

If there is any distribution from an account to any person or for the benefit of any person during the calendar year, the distribution shall be reported to the internal revenue service and to the account owner or the designated beneficiary to the extent required by federal law.

(16)

The financial institution shall provide statements to each account owner at least once each year.

(17)

Statements and information returns relating to accounts shall be prepared and filed to the extent required by federal or state tax law.

(18)

Intentionally left blank —Ed.

(a)

In the case of an ABLE savings program account, a person other than the account owner may establish an account and have signature authority over an account on behalf of the account owner in accordance with section 529A of the internal revenue code and the regulations promulgated under that section.

(b)

The authority shall adopt any guidelines and procedures that are necessary to allow a person other than the account owner to establish an ABLE savings program account and have signature authority over such an account in accordance with this subsection (18).

Source: Section 23-3.1-306 — Accounts - contributions - withdrawals - penalties - statements, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-23.­pdf (accessed Oct. 20, 2023).

23‑3.1‑101
Legislative declaration 23‑3.1‑102
Definitions 23‑3.1‑103
Division created - director - staff 23‑3.1‑103.5
Enterprise status of division 23‑3.1‑104
Duties and powers of division - rules 23‑3.1‑104.5
Additional powers of division 23‑3.1‑104.7
Restructuring plan - legislative declaration 23‑3.1‑106
Student loan program established 23‑3.1‑106.5
Special funds 23‑3.1‑107
Student loan guarantee fund - created 23‑3.1‑108
Age qualification 23‑3.1‑109
Subject to audit 23‑3.1‑110
Designation as sole state agency 23‑3.1‑111
Authority of division to enter into agreements to provide administrative and guarantee services 23‑3.1‑112
Authority and power of the division to guarantee, originate, service, make, and purchase consolidation loans and refinancing loans 23‑3.1‑201
Legislative declaration 23‑3.1‑202
Definitions 23‑3.1‑203
Authority - creation - membership - transfer of personnel 23‑3.1‑204
Organizational meeting - chairperson - conflict of interest 23‑3.1‑205
Meetings of board - quorum - expenses 23‑3.1‑205.3
Transfer of property 23‑3.1‑205.4
Collegeinvest fund - creation - control - use 23‑3.1‑205.5
Collegeinvest - enterprise status 23‑3.1‑205.7
Department of higher education - executive director - powers and duties 23‑3.1‑206
General powers and duties of the authority 23‑3.1‑206.5
Servicing of student obligations and institutional loans 23‑3.1‑206.7
Prepaid expense program 23‑3.1‑206.9
Colorado collegeinvest scholarship program - administration - fund - policies 23‑3.1‑207
Notes 23‑3.1‑208
Bonds 23‑3.1‑209
Negotiability of bonds 23‑3.1‑210
Security for bonds and notes 23‑3.1‑211
Personal liability 23‑3.1‑212
Purchase 23‑3.1‑213
Payment of bonds and advance payment contracts - limited liability of state 23‑3.1‑214
Exemption from taxation - securities law 23‑3.1‑215
Fees 23‑3.1‑216
Investment of funds 23‑3.1‑217
Proceeds as trust funds 23‑3.1‑217.5
Claims of creditors - exemption 23‑3.1‑218
Agreement of the state not to limit or alter rights of obligees 23‑3.1‑219
Enforcement of rights of bondholders 23‑3.1‑220
Bonds eligible for investment 23‑3.1‑221
Account of activities - receipts for expenditures - report - audit 23‑3.1‑222
Federal social security act 23‑3.1‑223
Powers of authority not restricted 23‑3.1‑224
Contract powers of state-supported institutions of higher education - nonliability of state 23‑3.1‑225
Confidentiality of records 23‑3.1‑226
Policies for promotion and disclosure of program information 23‑3.1‑301
Legislative declaration 23‑3.1‑302
Definitions 23‑3.1‑303
Department - purpose - powers - duties 23‑3.1‑304
Authority - purpose - powers - duties 23‑3.1‑305
Financial institutions - managers - purpose - selection - requirements - contracts 23‑3.1‑306
Accounts - contributions - withdrawals - penalties - statements 23‑3.1‑306.5
College kickstarter account program - funding - administration - financial literacy course - rules - legislative declaration - definitions 23‑3.1‑307
Limitations 23‑3.1‑307.1
Personal liability 23‑3.1‑307.3
Proceeds as trust funds 23‑3.1‑307.4
Claims of creditors - exemption 23‑3.1‑307.5
Confidentiality of records 23‑3.1‑307.9
Policies for promotion and disclosure of program information 23‑3.1‑308
Residency 23‑3.1‑309
Tax exemption 23‑3.1‑311
Achieving a better life experience (ABLE) savings program - establishment - authority - powers - duties
Green check means up to date. Up to date

Current through Fall 2024

§ 23-3.1-306’s source at colorado​.gov