53-25-109. Program requirements — application — establishment of account — contributions. (1) The program must be operated through use of accounts in the trust established by designated beneficiaries. Payments to the trust for participation in the program must be made by or on behalf of designated beneficiaries pursuant to participating trust agreements. A person who wishes to participate in the program and open an account into which funds will be deposited to pay the qualified disability expenses of a designated beneficiary shall:

Terms Used In Montana Code 53-25-109

  • Account: means an eligible participating account established under this chapter by or on behalf of an eligible individual. See Montana Code 53-25-103
  • Agent: means one of the following persons acting on behalf of a designated beneficiary:

    (a)a person acting under a power of attorney; or

    (b)if no person holds a power of attorney, a parent or legal guardian of the designated beneficiary. See Montana Code 53-25-103

  • Annual contribution limit: means the limit established in section 529A(b)(2) of the Internal Revenue Code, 26 U. See Montana Code 53-25-103
  • Application: means a form executed by or on behalf of a prospective designated beneficiary to enter into a participating trust agreement and open an account. See Montana Code 53-25-103
  • 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
  • Contribution: means a payment to an account for the benefit of a designated beneficiary. See Montana Code 53-25-103
  • Contributor: means a person who makes a contribution to an account for the benefit of a designated beneficiary. See Montana Code 53-25-103
  • Department: means the department of public health and human services provided for in 2-15-2201. See Montana Code 53-25-103
  • Designated beneficiary: means the eligible individual on whose behalf an account is established. See Montana Code 53-25-103
  • Financial institution: means a bank, commercial bank, national bank, savings bank, savings and loan association, credit union, insurance company, trust company, investment adviser, or other similar entity that is authorized to do business in this state. See Montana Code 53-25-103
  • Participating trust agreement: means an agreement between a designated beneficiary and the department or its designee that creates a trust interest in the trust and provides for participation in the program. See Montana Code 53-25-103
  • Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
  • Program: means the Montana achieving a better life experience program provided for in this chapter and authorized under section 529A of the Internal Revenue Code, 26 U. See Montana Code 53-25-103
  • Qualified disability expenses: means qualified disability expenses as defined in section 529A(e)(5) of the Internal Revenue Code, 26 U. See Montana Code 53-25-103
  • 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 achieving a better life experience savings trust as provided in 53-25-121. See Montana Code 53-25-103

(a)enter into a participating trust agreement pursuant to which an account of the trust will be established;

(b)complete an application on a form prescribed by the department that includes:

(i)the name, address, and social security number of the designated beneficiary and the agent, if the agent is opening the account;

(ii)the government-issued identification of the person opening the account;

(iii)the certification relating to no excess contributions adopted by the department;

(iv)the designation of the financial institution with which the funds in the account will be invested; and

(v)any other information required by the department;

(c)pay the one-time application fee established by the department;

(d)make the minimum contribution required by the department; and

(e)designate the type of account to be opened if more than one type of account is offered.

(2)Each account must be maintained separately from each other account under the program.

(3)Separate records and accounting must be maintained for each account for each designated beneficiary.

(4)Contributions to an account are subject to the requirements of section 529A(b)(2) of the Internal Revenue Code, 26 U.S.C. § 529A(b)(2), prohibiting noncash contributions and contributions in excess of the annual contribution limit.

(5)A contributor to or designated beneficiary or agent of an account may not direct the investment of any contributions to an account or the earnings generated by an account in violation of section 529A of the Internal Revenue Code, 26 U.S.C. § 529A, and may not pledge the interest of an account or use an interest in an account as security for a loan.

(6)The financial institution shall provide statements to designated beneficiaries whose accounts are invested with the institution at least once each year within 31 days after the 12-month period to which they relate. Each statement must identify the contributions made during the preceding 12-month period, the total contributions made through the end of the period, the value of the account as of the end of the period, distributions made during the period, and any other matters that the department requires to be reported to the designated beneficiary.

(7)Statements and information returns relating to accounts must be prepared and filed to the extent required by federal or state tax law or by administrative rule.

(8)Application fees provided for in subsection (1)(c) must be deposited in the state special revenue fund to the credit of the department for the administration of the achieving a better life experience program.

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