Michigan Laws 206.990 – Maximum account balance limit
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 206.990
- ABLE: means achieving a better life experience. See Michigan Laws 206.982
- account: means an account established under this act. See Michigan Laws 206.982
- Account owner: means an individual who is a resident of this state, or a resident of a contracting state, and who enters into a Michigan ABLE savings program agreement and establishes an ABLE savings account. See Michigan Laws 206.982
- 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
- Designated beneficiary: means an eligible individual designated as the individual whose qualified disability expenses are expected to be paid from the account. See Michigan Laws 206.982
- Program: means the Michigan ABLE savings program established pursuant to this act. See Michigan Laws 206.982
- Program manager: means 1 or more entities selected by the treasurer to act as a manager of the program. See Michigan Laws 206.982
(1) The maximum account balance limit for an ABLE account shall not exceed the maximum amount allowed for an education savings account pursuant to section 10 of the Michigan education savings program act, 2000 PA 161, MCL 390.1480.
(2) The program manager shall notify an account owner if the annual contributions to an ABLE savings account get within $1,000.00 of the contributions limits established under section 7(4). The program manager shall provide an account owner with written notification at least 5 business days before rejecting a contribution as provided in subsection (3).
(3) The program manager shall reject a contribution to any account for a designated beneficiary if, at the time of the contribution, the total balance of the account for that designated beneficiary has reached the maximum account balance limit under subsection (1) or the contribution is in excess of the limits established pursuant to section 7(4). An account may continue to accrue earnings if the total balance of the account for that beneficiary has reached the maximum account balance limit and shall not be considered to have exceeded the maximum account balance limit under subsection (1).