LAC 28:VI.507. Applicable Definitions

A. Words and terms not otherwise defined in these rules shall have the meanings ascribed to such words and terms in this Section. Where the masculine is used in these rules, it includes the feminine, and vice versa; where the singular is used, it includes the plural, and vice versa. Account Ownerthe eligible individual who opened the account, or the eligible individual on whose behalf the account was opened, and who is also the beneficiary. Administratorthe person who has the authority to direct the activities of the account. The administrator of the account may be the account owner or a person authorized by law or by authentic act to administer the account on behalf of the beneficiary. For purposes of these rules, the term administrator shall mean the account owner or a person who is legally authorized to act on his behalf. Annual Contribution Limit¾the amount over which an account owner may not make further deposits in a calendar year, currently the annual gift tax exclusion calculated in accordance with Internal Revenue Code Section 2503. Beneficiarythe eligible individual who established the ABLE account, or for whom an ABLE account was established, and who is the owner of such account. Current Valuethe value of an ABLE account at a given point in time. a. The current value of fixed earnings investment options includes the accumulated value of the principal deposited and earnings on deposits. b. The current value of variable earnings investment options includes the number of units in the investment option purchased multiplied by the current value of each unit. This value may be more or less than the amount originally deposited. Depositsthe actual amount of money received for deposit for investment in an ABLE account. Deposits do not include earnings on deposits. Eligible Individualan individual is an eligible individual for a given tax year if one of the following is met: a.i. through December 31, 2025, the individual is entitled to benefits based on blindness or disability under title II or XVI of the Social Security Act, and such blindness or disability occurred before the date on which the individual attained age 26; or ii. a disability certification with respect to such individual is filed with the secretary for such taxable year. b.i. beginning January 1, 2026, the individual is entitled to benefits based on blindness or disability under title II or XVI of the Social Security Act, and such blindness or disability occurred before the date on which the individual attained age 46; or ii. a disability certification with respect to such individual is filed with the secretary for such taxable year. False or Misleading Informationa statement or response made by a person which is knowingly false or misleading, and made for the purpose of establishing a program account and/or receiving benefits to which the person would not otherwise be entitled. Fixed Earningsthe placement of all deposits in an ABLE account, including the interest earned thereon, in investments that normally provide a fixed rate of return for a specific period of time. Louisiana Board of Regentsthe agency of state government responsible for administering the ABLE account program under the direction of the Tuition Trust Authority. Louisiana Resident a. any person who resided in the state of Louisiana on the date of the application and who has manifested intent to remain in the state by establishing Louisiana as legal domicile, as demonstrated by compliance with all of the following: i. if registered to vote, is registered to vote in Louisiana; ii. if licensed to drive a motor vehicle, is in possession of a Louisiana driver's license; iii. if owning a motor vehicle located within Louisiana, is in possession of a Louisiana registration for that vehicle; iv. if earning an income, has complied with state income tax laws and regulations; b. a member of the Armed Forces stationed outside of Louisiana who claims Louisiana on his/her official DD Form 2058 as his/her legal residence for tax purposes, and is in compliance with state income tax laws and regulations, shall be considered eligible for program participation; c. a member of the Armed Forces stationed in Louisiana under permanent change of station orders shall be considered eligible for program participation; d. persons less than 21 years of age are considered Louisiana residents if they reside with and are dependent upon one or more persons who meet the above requirements. Louisiana Tuition Trust Authority (LATTA)the statutory body responsible for the administration of the ABLE Account Program. Maximum Allowable Account Balance500,000. Member of Family―an individual who is the brother, sister, stepbrother, stepsister, half-brother, or half-sister to the beneficiary, including an adopted brother, sister, stepbrother, stepsister, half-brother, or half-sister. Natural Persona human being. Office of Student Financial Assistance (LOSFA)a program under the Board of Regents, performs the functions of the state relating to programs of financial assistance and certain scholarship programs for higher education in accordance with directives of its governing bodies and applicable law, and as such is responsible for administering the ABLE account program as directed by LATTA and the Board of Regents. Other Person (with respect to any designated beneficiary)any person, other than the beneficiary, whether natural or juridical, who is not a member of the family, including but not limited to individuals, groups, trusts, estates, associations, organizations, partnerships, corporations, and custodians under the Uniform Transfer to Minors Act (UTMA). Owner’s Agreementthe agreement for program participation that the account owner or administrator completes and signs. It incorporates, by reference, R.S. 17:3081 et seq., and the rules promulgated by the LATTA to implement this statutory provision and any other state or federal laws applicable to the agreement and the terms and conditions as set forth therein. Persona human being or a juridical entity. Qualified Disability Expenses (QDEs)expenses that relate to the blindness or disability of the designated beneficiary in maintaining or improving his or her health, independence, or quality of life. QDEs may, but need not, benefit only the disabled individual. QDEs include, but are not limited to, expenses related to the beneficiary’s: a. education; b. housing; c. transportation; d. employment training and support; e. assistive technology and related services; f. personal support services; g. health, prevention, and wellness; h. financial management and administrative services; i. legal fees; j. expenses for oversight and monitoring; k. funeral and burial expenses; and l. other expenses which may be identified by the Internal Revenue Service. Redemption Valuethe cash value of the money in an ABLE Account invested in a fixed earnings option that are attributable to the sum of the principal deposited and the earnings on principal authorized to be credited to the account by the LATTA, less any disbursements and refunds. Redemption value is not applicable to an ABLE account invested in variable earnings. Refund Recipientthe person designated in the ABLE account program owner's agreement or by operation of law to receive refunds from the account. The designated refund recipient can only be the account owner, his heirs, or his estate. If no refund recipient is designated, the refund shall be made to the Disability Services Fund established by R.S.28.826(B)(2)(d). Trade Datethe date that a deposit to an investment option that includes variable earnings is assigned a value in units, the date a disbursement or refund from an investment option that includes variable earnings is assigned a value, or the date of a change in investment options that includes variable earnings is assigned a value, whichever is applicable. Variable Earningsrefers to that portion of funds in an ABLE account invested in equities, bonds, short-term fixed income investments or a combination of any of the three.