Section 166.514

Title XI EDUCATION AND LIBRARIES

Chapter 166

Effective - 28 Aug 2004   

  166.514.  Cancellation of agreements, penalty. — Any participant may cancel a participation agreement at will. The board shall impose a penalty equal to or greater than ten percent of the earnings of an account for any distribution that is not:

  (1)  Used exclusively for qualified higher education expenses of the designated beneficiary;

  (2)  Made because of death or disability of the designated beneficiary;

  (3)  Made because of the receipt of scholarship by the designated beneficiary;

  (4)  A rollover distribution, as defined in Section 529(c)(3)(C)(i) of the Internal Revenue Code; or

  (5)  Held in the fund for the minimum length of time established by the board.

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(L. 2004 H.B. 959 § 166.530)