Effective - 28 Aug 2004
166.508. Deposit program participation agreements, terms and conditions — contribution limits — minimum holding time for contributions. — 1. The board may enter into deposit program participation agreements with participants on behalf of beneficiaries pursuant to the provisions of sections 166.500 to 166.529, including the following terms and conditions:
(1) A participation agreement shall stipulate the terms and conditions of the deposit program in which the participant makes contributions;
(2) A participation agreement shall specify the method for calculating the return on the contribution made by the participant as otherwise provided in sections 166.500 to 166.529;
(3) The execution of a participation agreement by the board shall not guarantee that the beneficiary named in any participation agreement will be admitted to an eligible educational institution, be allowed to continue to attend an eligible educational institution after having been admitted or will graduate from an eligible educational institution;
(4) A participation agreement shall disclose to participants the risk associated with depositing moneys with the board, including information on federal insured deposit availability and coverage and penalties for withdrawal before the deposit has matured;
(5) Participation agreements shall be organized and presented in a way and with language that is easily understandable by the general public; and
(6) A participation agreement shall clearly and prominently disclose to participants the existence of any fee or similar charge assessed against the accounts of the participants for administration or services.
2. The board shall establish the maximum amount which may be contributed annually by a participant with respect to a beneficiary.
3. The board shall establish a total contribution limit for deposit accounts established under the deposit program with respect to a beneficiary to permit the deposit program to qualify as a qualified state tuition program pursuant to Section 529 of the Internal Revenue Code. No contribution may be made to a deposit account for a beneficiary if it would cause the balance of all deposit accounts of the beneficiary to exceed the total contribution limit established by the board. The board may establish other requirements that it deems appropriate to provide adequate safeguards to prevent contributions on behalf of a beneficiary from exceeding what is necessary to provide for the qualified higher education expenses of the beneficiary.
4. The board shall establish the minimum length of time that contributions and earnings must be held by the deposit program to qualify pursuant to section 166.435. Any contributions or earnings that are withdrawn or distributed from a deposit account prior to the expiration of the minimum length of time, as established by the board, shall be subject to a penalty pursuant to section 166.514.
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(L. 2004 H.B. 959 § 166.520)
Structure Missouri Revised Statutes
Title XI - Education and Libraries
Chapter 166 - Permanent Funds and Trusts
Section 166.011 - Public school fund — source — disposition.
Section 166.031 - State treasurer to be custodian of fund — accounts — annual report.
Section 166.051 - School moneys fund — interest from investments credited to.
Section 166.061 - Gifts to public school fund.
Section 166.071 - Receipts for gifts to public school fund.
Section 166.081 - Instrument of conveyance, when recorded.
Section 166.091 - Disposition of property granted.
Section 166.111 - Liability of director of revenue.
Section 166.121 - State, the trustee.
Section 166.141 - County treasurer to collect funds — receipts — penalty for violation.
Section 166.151 - Petition to distribute county school fund.
Section 166.400 - Citation of law.
Section 166.410 - Definitions.
Section 166.421 - Income tax refund, contribution to education savings account — election, how made.
Section 166.425 - Board to invest funds, use of funds — not deemed income, when.
Section 166.430 - Cancellation of agreement, results — penalty.
Section 166.435 - State tax exemption.
Section 166.440 - Assets not state property.
Section 166.445 - Rules, invalid, when.
Section 166.450 - Review of program.
Section 166.455 - Funds not state revenues.
Section 166.456 - Confidentiality of information.
Section 166.500 - Citation of law.
Section 166.501 - Program established as alternative to Missouri education program.
Section 166.502 - Definitions.
Section 166.511 - Prompt investment of moneys paid by participation agreements, use of moneys.
Section 166.514 - Cancellation of agreements, penalty.
Section 166.517 - Assets used for program purposes only.
Section 166.520 - Rulemaking authority.
Section 166.523 - Review of program by state auditor, when.
Section 166.526 - Program moneys not part of total state revenues.
Section 166.529 - Confidentiality requirements.
Section 166.700 - Definitions.
Section 166.715 - Misuse of moneys, penalty — financial institutions immunity from liability, when.