La. Admin. Code tit. 28 § VI-713

Current through Register Vol. 50, No. 11, November 20, 2024
Section VI-713 - Deposits to Education Savings Accounts
A. Application Fee and Initial Deposit Amount
1. No application fee will be charged to participants applying for a START K12 account directly to the LATTA.
2. Financial and investment institutions may be authorized by the LATTA to offer assistance in establishing a START K12 account. (See fees in §709.D 6)
3. An initial deposit is not required to open an START K12 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 maximum allowable account balance (see §707).
B. Deposit Options
1. The account owner shall select one of the following deposit options during the completion of the owner's agreement; however, the account owner 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 account owner's checking or savings account to the LATTA or a LATTA-approved investment institution;
d. payroll deduction, if available through the account owner's employer.
2. Account owners are encouraged to maintain a schedule of regular monthly deposits.
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 §713.B 1
2. Once the cumulative contributions and earnings on contributions has reached or exceeded the maximum allowable account balance (see §707), principal deposits will no longer be accepted to the account until a qualified distribution is made which reduces the account balance below the maximum allowable account balance.
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 account owner shall select the investment options in completing the owner's agreement, and
4. The investment option may be changed two times each calendar year.
5. 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-713

Promulgated by the Tuition Trust Authority, Office of Student Financial Assistance, LR 441883 (10/1/2018).
AUTHORITY NOTE: Promulgated in accordance with R.S. 17:3100.1 et seq.