Sec. 10.
(1) The maximum account balance limit for an ABLE account shall not exceed the maximum amount allowed for an education savings account pursuant to section 10 of the Michigan education savings program act, 2000 PA 161, MCL 390.1480.
(2) The program manager shall notify an account owner if the annual contributions to an ABLE savings account get within $1,000.00 of the contributions limits established under section 7(4). The program manager shall provide an account owner with written notification at least 5 business days before rejecting a contribution as provided in subsection (3).
(3) The program manager shall reject a contribution to any account for a designated beneficiary if, at the time of the contribution, the total balance of the account for that designated beneficiary has reached the maximum account balance limit under subsection (1) or the contribution is in excess of the limits established pursuant to section 7(4). An account may continue to accrue earnings if the total balance of the account for that beneficiary has reached the maximum account balance limit and shall not be considered to have exceeded the maximum account balance limit under subsection (1).
History: 2015, Act 160, Eff. Jan. 26, 2016
Structure Michigan Compiled Laws
Chapter 206 - Income Tax Act of 1967
Act 160 of 2015 - Michigan Achieving a Better Life Experience (Able) Program Act (206.981 - 206.997)
Section 206.981 - Short Title.
Section 206.982 - Definitions.
Section 206.984 - Management Contract; Supervision.
Section 206.985 - Management Contract; Term of Years; Termination.
Section 206.986 - Contracts as Necessary and Proper.
Section 206.988 - Changes in Account Owners or Designated Beneficiaries; Transfers.
Section 206.990 - Maximum Account Balance Limit.
Section 206.993 - Construction and Interpretation of Act and Agreement.
Section 206.994 - State Obligation.
Section 206.995 - Annual Report.