La. Admin. Code tit. 28 § VI-511

Current through Register Vol. 50, No. 11, November 20, 2024

Section VI-511 - Deposits to ABLE Accounts

A. Application Fee and Initial Deposit Amount

1. No application fee will be charged to those applying for an ABLE account on behalf of an eligible individual.

2. Financial and investment institutions may be authorized by the LATTA to offer assistance in establishing an ABLE account. (See fees in §509.G.4).

3. An initial deposit is not required to open an ABLE account; however, a deposit of at least $10 must be made within 180 days from the date on the letter of notification of approval of the account.

4. A lump sum deposit may not exceed the annual contribution limit unless such deposit is the result of a rollover from another ABLE Program.

B. Deposit Options

1. The administrator shall select one of the following deposit options during the completion of the owner's agreement; however, the administrator may change the monthly deposit amount at any time and the payment method by notifying the LATTA:

a. occasional lump sum payment(s) made directly to the LATTA or to a LATTA-approved investment institution;

b. monthly payments made directly to the LATTA or to a LATTA-approved financial or investment institution;

c. automatic account debit, direct monthly transfer from the Administrator's checking or savings account to the LATTA or a LATTA-approved investment institution;

d. payroll deduction, if available through the administrator's employer.

C. Limitations on Deposits

1. All deposits must be rendered in amounts of at least $10 and must be made in cash, check, money order, automatic account debit or payroll deduction, defined as any of the deposit options listed in §511.B 1

2. Once the cumulative contributions and earnings on contributions have reached or exceeded the maximum allowable account balance, principal deposits will no longer be accepted to the account until a distribution is made which reduces the account balance below the maximum allowable account balance.

3. ABLE account balances of up to $100,000 will not affect Social Security income (SSI) benefits. However, once an account exceeds $100,000, SSI benefits will be suspended until such time as the balance is reduced below $100,000.

4. If the person for whose benefit an ABLE account was opened ceases to be an eligible individual as defined in §507, no further deposits will be accepted unless and until such time as the person becomes an eligible individual again.

D. Investment Options

1. The state treasurer shall select fixed earnings and variable earnings investment options.

2. The authority shall furnish each account owner with information that discloses each of the investment options offered by the program.

3. The administrator shall select the investment option for the ABLE account at the time the account is opened. The administrator may select the same or a different investment option at the time of each deposit.

4. Changing the Investment Option

a. The administrator may change the investment options no more than two times in a calendar.

b. If an ABLE account has funds in two or more investment options.

i. Each option in the account may be changed to one different option or allowed to remain the same.

ii. All funds in each option changed must be transferred.

iii. Funds in one option may not be moved to more than one option.

iv. All changes in investment options must take place in one transaction.

v. Whether the funds are moved from one option or all options, the change is considered one of the two allowed investment option changes per calendar year.

c. Once a selection is made, all deposits shall be directed to the last investment option selected. E. Effective Date of Deposits

1. Deposits for investment options that are limited to fixed earnings will be considered to have been deposited on the date of receipt.

2. Deposits for investment options that include variable earnings will be assigned a trade date based on the method of deposit and the date of receipt.

a. Deposits by check will be assigned a trade date three business days after the business day during which they were received.

b. Deposits made by electronic funds transfer through the automated clearing house (ACH) network, or its successor, will be assigned a trade date of three business days after the business day during which they were received.

c. Deposits made by all other means of electronic funds transfer, including deposits made by transferring funds from a variable earnings option in which they are currently deposited to another option, will be assigned a trade date of one business day after the business day during which they were received.

3. Deposits for investment options that include variable earnings which are received via check or electronic funds transfer through the automated clearing house network will be deposited into the fixed earnings option until the trade date. Earnings accrued on these deposits prior to the trade date shall be deposited in the variable earnings transaction fund.

4. Deposits received on weekends and holidays will be considered received on the next business day.

La. Admin. Code tit. 28, § VI-511

Promulgated by the Tuition Trust Authority, Office of Student Financial Assistance, LR 43641 (4/1/2017), Amended LR 47576 (5/1/2021).

AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3081-3089.