Cal. Code Regs. tit. 10 § 9005

Current through Register 2024 Notice Reg. No. 45, November 8, 2024

Section 9005 - Qualified Distributions

(a) Qualified Distributions. Distributions from an account must be used to pay for Qualified Disability Expenses as defined in Welfare and Institutions Code section 4875(l) and IRC section 529 A.

(b) Nonqualified Distributions. Any withdrawal that is not (1) used to pay the Qualified Disability Expenses of the Account Owner or (2) rolled over to another qualified ABLE program for the same beneficiary or for another Eligible Individual who is also a Member of the Family of the beneficiary is a Nonqualified Distribution. The earnings portion of Nonqualified Distributions may be subject to federal and state income tax. Additionally, Nonqualified Distribution may impact benefit eligibility and benefit amounts.

Cal. Code Regs. Tit. 10, § 9005

1. New section filed 2-21-2017 as a deemed emergency pursuant to Welfare and Institutions Code section 4882(b); operative 2-21-2017 (Register 2017, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-21-2017 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 8-21-2017 as a deemed emergency pursuant to Welfare and Institutions Code section 4882(b); operative 8-21-2017 (Register 2017, No. 34). A Certificate of Compliance must be transmitted to OAL by 11-20-2017 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 8-21-2017 order transmitted to OAL 8-24-2017 and filed 10-5-2017 (Register 2017, No. 40).

Note: Authority cited: Section 4882, Welfare and Institutions Code. Reference: Sections 4875, 4877 and 4878, Welfare and Institutions Code; and Section 529 A, Internal Revenue Code.