Montana Code 15-62-103. Definitions
15-62-103. Definitions. As used in this chapter, the following definitions apply:
Terms Used In Montana Code 15-62-103
- Account: means an individual account established under this chapter. See Montana Code 15-62-103
- Account owner: means the person who enters into a participation agreement and establishes an account on behalf of a designated beneficiary. See Montana Code 15-62-103
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Board: means the board of regents of higher education established by Article X, section 9, subsection (2), of the Montana constitution and 2-15-1505. See Montana Code 15-62-103
- Committee: means the family education savings program oversight committee established in 20-25-901. See Montana Code 15-62-103
- Designated beneficiary: means , with respect to an account, the person designated at the time that the account is opened as the person whose education expenses are expected to be paid from the account or if this person is replaced in accordance with 15-62-202, the individual replacing the former designated beneficiary. See Montana Code 15-62-103
- Education expense: means expenses for tuition, fees, books, supplies, equipment required for an education program, principal or interest on any qualified education loan, and any other typical education expense associated with an education program up to the maximum amount allowable under section 529 of the Internal Revenue Code, 26 U. See Montana Code 15-62-103
- Member of the family: means , with respect to a designated beneficiary, a member of the family of the designated beneficiary as defined in section 529 of the Internal Revenue Code, 26 U. See Montana Code 15-62-103
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
- Oversight: Committee review of the activities of a Federal agency or program.
- Participation agreement: means an agreement between the board, as trustee and as administrator of the program, and the account owner that creates a trust interest in the trust and provides for participation in the program. See Montana Code 15-62-103
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Program: means the family education savings program established pursuant to 15-62-201. See Montana Code 15-62-103
- Qualified education expenses: means any education expense permitted by section 529 of the Internal Revenue Code, 26 U. See Montana Code 15-62-103
- Qualified tuition program: means a qualified tuition program as defined in section 529 of the Internal Revenue Code, 26 U. See Montana Code 15-62-103
- Qualified withdrawal: means a withdrawal from an account to pay the qualified education expenses of the designated beneficiary of the account. See Montana Code 15-62-103
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Trust: means the family education savings trust established by 15-62-301. See Montana Code 15-62-103
- Trust interest: means an account owner's interest in the trust created by a participation agreement and held for the benefit of a designated beneficiary. See Montana Code 15-62-103
- Trustee: means the board in its capacity as trustee of the trust. See Montana Code 15-62-103
- Trustee: A person or institution holding and administering property in trust.
(1)”Account” means an individual account established under this chapter.
(2)”Account owner” means the person who enters into a participation agreement and establishes an account on behalf of a designated beneficiary.
(3)”Board” means the board of regents of higher education established by Article X, section 9, subsection (2), of the Montana constitution and 2-15-1505.
(4)”Committee” means the family education savings program oversight committee established in 20-25-901.
(5)”Contributor” means a person who makes a contribution to an account for the benefit of a designated beneficiary.
(6)”Designated beneficiary” means, with respect to an account, the person designated at the time that the account is opened as the person whose education expenses are expected to be paid from the account or if this person is replaced in accordance with 15-62-202, the individual replacing the former designated beneficiary.
(7)”Education expense” means expenses for tuition, fees, books, supplies, equipment required for an education program, principal or interest on any qualified education loan, and any other typical education expense associated with an education program up to the maximum amount allowable under section 529 of the Internal Revenue Code, 26 U.S.C. § 529, as amended.
(8)”Financial institution” means any bank, commercial bank, national bank, savings bank, savings and loan association, credit union, insurance company, trust company, investment company, or other similar entity that is authorized to do business in this state.
(9)”Higher education institution” means an eligible educational institution as defined in section 529 of the Internal Revenue Code, 26 U.S.C. § 529.
(10)”Investment products” means, without limitation, certificates of deposit, savings accounts paying fixed or variable interest, financial instruments, one or more mutual funds, and a mix of mutual funds.
(11)”Member of the family” means, with respect to a designated beneficiary, a member of the family of the designated beneficiary as defined in section 529 of the Internal Revenue Code, 26 U.S.C. § 529.
(12)”Nonqualified withdrawal” means a withdrawal from an account that is not:
(a)a qualified withdrawal;
(b)a withdrawal made as the result of the death or disability of the designated beneficiary of an account;
(c)a withdrawal that is made on the account of a scholarship or the allowance or payment described in section 135(d)(1)(B) or (d)(1)(C) of the Internal Revenue Code, 26 U.S.C. § 135(d)(1)(B) or (d)(1)(C), and that is received by the designated beneficiary; or
(d)a rollover or change of designated beneficiary described in 15-62-202.
(13)”Participation agreement” means an agreement between the board, as trustee and as administrator of the program, and the account owner that creates a trust interest in the trust and provides for participation in the program.
(14)”Program” means the family education savings program established pursuant to 15-62-201. The program must be structured to permit the long-term accumulation of savings that can be used to finance all or a share of the costs of education.
(15)”Qualified education expenses” means any education expense permitted by section 529 of the Internal Revenue Code, 26 U.S.C. § 529.
(16)”Qualified tuition program” means a qualified tuition program as defined in section 529 of the Internal Revenue Code, 26 U.S.C. § 529.
(17)”Qualified withdrawal” means a withdrawal from an account to pay the qualified education expenses of the designated beneficiary of the account.
(18)”Trust” means the family education savings trust established by 15-62-301.
(19)”Trust interest” means an account owner’s interest in the trust created by a participation agreement and held for the benefit of a designated beneficiary.
(20)”Trustee” means the board in its capacity as trustee of the trust.