W. Va. Code R. § 112-20-11

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 112-20-11 - Termination of Account

11.1. An account owner may terminate an account at any time by submitting an account termination request to the board, via any method made available by the board on the website: https://wvjumpstart.com.

11.2. If the board receives credible evidence that an account owner or a designated beneficiary has provided false or misleading information to the board, or to a state or federal tax authority related to an account, the board may suspend an account pending an investigation. The board shall consider any credible information provided by the account owner to refute the evidence leading to suspension of the account. The board shall provide written notice of any suspension and the reason for the suspension to an account owner as soon as reasonably practicable.

11.3. If the board receives credible evidence that an account has been used in connection with fraud or inappropriate activity, or in connection with a violation of any laws or any rules or standards of the program, the board may suspend such account pending an investigation. The board shall consider any credible information provided by the account owner to refute the evidence leading to suspension of the account. The board shall provide written notice of any suspension and the reason for the suspension to an account owner as soon as reasonably practicable.

11.4. If the board determines that an account owner or designated beneficiary has provided false or misleading information to the board, or to a state or federal tax authority related to an account, or if the board determines that an account has been used in connection with fraud or inappropriate activity, or in connection with a violation of any laws or any rules or standards of the program, the board may terminate the account. The board shall provide written notice of the decision to terminate an account to the account owner as soon as reasonably practicable.

11.5. The board may terminate an account in accordance with the provisions of the program description and participation agreement if the account balance drops below a point at which there are insufficient funds to cover appropriate account fees or are below a level determined by the board.

11.6. Upon termination of an account, the remaining account balance will be distributed to the account owner, and the contributions and earnings thereon may be subject to federal and state income taxation according to applicable laws. Neither the program, nor the board nor the program manager, nor the board's other designee(s) shall be subject to liability for any federal or state income taxes or penalties imposed on an account owner as a result of a distribution.

11.7. The Board may develop standards and procedures to limit the number of accounts an account owner may open or the number of times an account owner or beneficiary may participate in any incentive program or programs in order to prevent duplication of program benefits, misuse of funds, or fraud.

W. Va. Code R. § 112-20-11