236.01.20 Ark. Code R. 001
The Arkansas Achieving A Better Life Experience Program (the "ABLE Program"), is established pursuant to the Arkansas Achieving a Better Life Experience Program Act, Chapter 3 of Title 20 of the Arkansas Code, as amended, codified as Ark. Code Ann. § 20-3-101, et seq. (the "Act"). The Program is designed to satisfy the requirements of Section 529 A of the Internal Revenue Code of 1986, as amended, and any rules, rulings, announcements and other guidance issued thereunder (collectively referred to as "Section 529A"). In accordance with the Act, the Arkansas ABLE Program Committee (the "Committee") has established the following rules governing the operation of the Program. To the extent these rules are interpreted to be inconsistent with provisions of Section 529A, the provisions of Section 529 A shall prevail. The Program may be affected by subsequent changes in federal and state legislation. The Committee shall have the right to modify these rules from time to time to comply with then current federal law and rules applicable to the Program and for other purposes. Capitalized terms not defined herein shall have the meaning ascribed to them in the Act.
ABLE means the federal Achieving a Better Life Experience Program as provided under the Tax Increase Prevention Act of 2014 (Pub. L. No. 113-295, as amended) that creates state-level tax-advantaged savings programs to assist Eligible Individuals.
ABLE Program or Program means the Arkansas Achieving a Better Life Experience Program administered by the ABLE Program Committee, managed by the Treasurer of the State of Arkansas, and created pursuant to the Arkansas Achieving a Better Life Experience Program Act of 2015 (Ark. Code Ann. § 20-3-101 et seq, as amended).
ABLE Program Committee or Committee means the committee created pursuant to Ark. Code Ann. § 20-3-105, or any successor provision thereto.
Account Application Form means an application substantially in the form approved by the Committee from time to time.
Account means an individual investment account established and owned by an Eligible Individual and maintained pursuant to the ABLE Program.
Administrative Expenses means all expenses associated with the implementation and administration of the ABLE Program, including fees payable to third parties providing services related to the ABLE Program.
Age-Based Option means a Portfolio the assets of which are invested in a combination of Underlying Investments, currently based on the ages of Designated Beneficiaries specified for such Portfolio.
Approved Allocation means the allocation of assets for a Portfolio as approved by the Committee as may be set forth in the Program Management Agreement.
Approved Allocation Effective Date means the annual date (July 1) by which the Approved Allocation for a Portfolio is approved, as may be set forth in the Program Management Agreement.
Arkansas Administration Fee means any fee paid out of the Program's assets to the Committee pursuant to a Program Management Agreement.
Business Day means each day on which the New York Stock Exchange is open for trading.
Code means the Internal Revenue Code of 1986, as amended (26 USC 1, et seq.).
Contracting State means a state without a qualified ABLE program that has entered into a contract with Arkansas to provide residents of the contracting state access to a qualified ABLE program.
Contribution Maximum means the maximum amount that may be contributed to an Account for the same Designated Beneficiary, as determined from time to time by the Committee in accordance with ABLE.
Designated Beneficiary means the Eligible Individual who established the Account and is the owner of the Account.
Designated Beneficiary Change Form means a form for changing a Designated Beneficiary substantially in the form approved by the Committee, from time to time.
Designated Representative means a person who is authorized to act on behalf of an Account Owner and Designated Beneficiary.
Disability Certification means the same as provided in Ark. Code Ann. § 20-3-103(4).
Earnings means the aggregate total of all dividends and interest income received by the ABLE Program at any time following the Program's commencement. The aggregate total of dividends and interest income shall be reduced by the aggregate total of Administrative Expenses at any time following the commencement of the Program. Earnings shall be determined without regard to realized or unrealized capital gains and losses incurred by the Program.
Eligible Individual means an individual who for a taxable year (1) is entitled to benefits based on blindness or disability under Title II or XVI of the Social Security Act, 42 U.S.C. § 301 et seq.. and the blindness or disability is a preexisting condition that occurred before the date on which the individual attained twenty-six (26) years of age; or (2) has a Disability Certification filed with the United States Secretary of the Treasury for the taxable year.
FDIC means the Federal Deposit Insurance Corporation.
Federal Guidelines means official guidance from federal agencies with jurisdiction over ABLE, including the SSA's Program Operations Manual System (SI 01130.740) (2016) and IRS Notice 2015-81, "Guidance Under Section 529A: Qualified ABLE Programs" (80 FR 35602) (2015). These incorporations by reference refer to the guidelines on the date specified and do not include any editions or amendments subsequently to the date specified.
Investment Fund means the portion of the Program's assets invested in Underlying Investments (i.e., that portion of the Program's assets not held in the Operating Fund).
IRS means the Internal Revenue Service.
Management Fee means any fee paid out of the Program's assets to the Program Manager pursuant to a written agreement approved by the Committee.
Member of the Family means a brother, sister, stepbrother, or stepsister.
MSRB means Municipal Securities Rulemaking Board and any duly established entity which succeeds to the functions thereof.
Net Asset Value means:
NYSE means the New York Stock Exchange.
Operating Account means the account established for the purpose of holding the Arkansas Administration Fee.
Operating Fund means that portion of the Program's assets not held in the Investment Fund.
Participation Agreement means an agreement to participate in the Program between an Account owner and the Program, substantially in the form approved by the Committee, from time to time.
Plan Disclosure Documents means the complete disclosure document or set of documents describing the Program, including any supplement(s) thereto, each as amended from time-to-time, constituting an "official statement" within the meaning of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended, and the rules of the MSRB and any successor to the applicable functions thereof.
Portfolio means one of the Program Portfolios established within the Investment Fund to which contributions may be allocated, and that are invested in Underlying Investments.
Program Management Agreement means a written implementing agreement among the Program, the Committee and the Program Manager.
Program Manager means the entity engaged by the Program to administer the daily operations of the ABLE Program, provide marketing, recordkeeping, investment management, and other services for the Program, and manage the assets of the Portfolios, all pursuant to the Program Management Agreement, and designated as such in the then current Plan Disclosure Documents.
Qualified Disability Expenses means the same as provided in Ark. Code Ann. § 20-3-103(8).
Qualified Withdrawal or Qualified Distribution means a withdrawal from an Account to pay the Qualified Disability Expenses of the Designated Beneficiary of the Account.
Rollover Contribution means a contribution to an Account which is transferred to or deposited in the Account from another program operating as a "qualified ABLE program" within the meaning of Section 529 A, or any successor provision thereto, of the Code.
Rollover Distribution means a distribution or transfer from an Account which is transferred to or deposited in another program operating as a "qualified ABLE program" within the meaning of Section 529A, or any successor provision thereto, of the Code.
Secretary means the U.S. Secretary of the Treasury.
SSA means the Social Security Administration.
SSI Limit means the Supplemental Security Income limit.
Series means a class of units of a Portfolio.
State means the State of Arkansas, acting through its executive, administrative, legislative and judicial branches.
Treasurer means the duly elected Treasurer of the State of Arkansas.
Trust means the Achieving a Better Life Experience Program Trust created pursuant to Ark. Code Ann. § 20-3-104(a).
Underlying Investments means ETF's, securities, separate accounts, registered mutual funds or other investments in which assets of a Portfolio are invested.
Withdrawal means a Qualified Withdrawal or a nonqualified withdrawal.
Withdrawal Request means a request by an Account owner to effect a Withdrawal substantially in the form or other process approved by the Committee, from time to time.
Year-of-Enrollment Portfolio means a Portfolio the assets of which are invested in a combination of Underlying Investments based upon the Designated Beneficiaries participated year of enrollment as determined by the Account owner.
The Treasurer and Committee may enter into an interstate agreement for joint ABLE-related services, in order to achieve better programming and higher economies of scale in investment options.
The Program will comply with all reporting responsibilities as outlined in the Federal Guidelines. The Treasurer, or the Treasurer's designee, will compile or cause to be compiled the needed information to complete any reports.
These Amended and Restated Rules are adopted as of Dec 28, 2020.
THE ARKANSAS ABLE PROGRAM COMMITTEE
By:_____________________________
Name: Fran Jansen
Title: Director of 529 Programs and Financial
Education
236.01.20 Ark. Code R. 001