Section 429-1-008 - Distributions008.1Method of Distributions The following four methods of Distribution shall be intended as being used to pay qualified Higher Education Costs : (1) the Distribution is made directly to an Institution of Higher Education;(2) the Distribution is made in the form of a check payable to both the designated Beneficiary and the Institution of Higher Education;(3) the Distribution is made after the designated Beneficiary submits such evidence as the Trustee may require, if any, to show that the Distribution is a reimbursement for payment of Higher Education Costs that the designated Beneficiary has already paid; or(4) the designated Beneficiary certifies prior to the Distribution that the Distribution will be expended for his or her Higher Education Costs within a reasonable time after the Distribution and said Beneficiary provides such evidence as the Trustee may require, if any, of the payment of the Higher Education Costs within 30 days of the Distribution. If the Beneficiary elects option (4), to the extent required by the Code and Act, the Participant must provide prompt substantiation of the payment of Higher Education Costs and the Trustee will retain an Account balance that is large enough to collect any Refund Penalty and other fees and charges that might be imposed if valid substantiation is not timely received by the Trustee. The Trustee may allow such other Distribution methods as may be allowed by the Code from time to time.008.2Non-Qualified Withdrawals; Penalties A Participant may request a Non-Qualified Withdrawal by submitting a completed non-qualified withdrawal request to the Trustee. If required by the Code and the Act, a Refund Penalty will be assessed on the NonQualified Withdrawal and then transferred to the Administrative Fund008.3Distributions Reported All Distributions from an Account shall be reported to the appropriate taxing authorities for the tax year in which such payments were made.429 Neb. Admin. Code, ch. 1, § 008