Withdrawals

(1) Eligibility. The Account Owner may request a Withdrawal from the Account as long as the contributions that will be withdrawn have been on deposit in the Account for at least twenty- one (21) calendar days. If the Account Owner desires the Board to send payment directly to the Eligible Educational Institution where the Beneficiary is enrolled, the notification must include the name and address of the Institution and the amount of funds needed to pay the Qualified Higher Education Expenses. Failure to provide sufficient notice prior to the start of the Academic Term in which the funds would be used may result in an untimely payment being made to the Institution. (2) Written Request. Any Withdrawal requests must be made in writing by the Account Owner or via other means acceptable to the Board, including electronic means. (3) Amount and Timing of Withdrawal. Subject to Rules 1700-05-04-.06(4) and 1700-05-04-.09 below, the Withdrawal amount will equal the amount requested, not to exceed the Redemption Value of the Beneficiary’s Account at the time the Withdrawal is processed. The Withdrawal amount will be paid within sixty (60) calendar days of receipt by the Board of a complete, accurate and legible request. (4) Types of Withdrawals. EDUCATIONAL INVESTMENT PLAN CHAPTER 1700-05-04 (a) Withdrawals for Qualified Higher Education Expenses. The Account Owner may direct a Withdrawal from the Account to the Account Owner, the Beneficiary, or an Eligible Educational Institution as an advance payment or as reimbursement for Qualified Higher Education Expenses. Third party documentation to substantiate the request shall not be required unless otherwise provided for in Section 529 of the Internal Revenue Code or the regulations promulgated thereunder. (b) Withdrawals for Non-Qualified Higher Education Expenses. The Account Owner may direct a Withdrawal from the Account for the payment of non-Qualified Higher Education Expenses. Such a Withdrawal may be made without causing termination of the Contract and without requiring the Refund Recipient to establish that the Withdrawal will be used for Qualified Higher Education Expenses. The earnings portion of Withdrawals made for non-Qualified Higher Education Expenses could be subject to federal taxation as prescribed under the sections of the Internal Revenue Code and the regulations promulgated thereunder which are applicable to the Program. (c) Scholarship Refund. If a Beneficiary is the recipient of a scholarship, allowance or payment described in Section 25A(g)(2) of the Internal Revenue Code that the Board determines cannot be converted into money by the Beneficiary, the Account Owner may request a Withdrawal of all or a portion of the funds in the Account. The Account Owner must furnish information about the scholarship, allowance or payment to the Board. If the scholarship, allowance or payment has a duration that extends beyond one (1) Academic Term, the Account Owner may request a refund in advance of the scholarship payment. The amount of the refund payable to the Account Owner will be equal to the Redemption Value of the Beneficiary’s Account that is not needed to cover the future Qualified Higher Education Expenses on account of the scholarship, allowance or payment minus any applicable fee(s) charged by the Board. (d) Contract Termination and Refund. Except as provided in Paragraph (4)(c) of this Rule above, a Contract may not be terminated for any reason except under one of the following circumstances: (i) the Beneficiary has died or suffers from a Permanent Disability; (ii) the Beneficiary is age eighteen (18) or older and has decided not to attend an Eligible Educational Institution; (iii) the Beneficiary has completed the requirements for a degree that is less than a bachelor’s degree at an Eligible Educational Institution and the Beneficiary does not plan to pursue further education; or (iv) the Beneficiary has completed the bachelor’s degree requirements at an Eligible Educational Institution. The Contract termination request must be accompanied with documentation acceptable to the Board to substantiate the reason for Contract termination. In the event a Contract is terminated due to the Permanent Disability or death of the Beneficiary, the amount of the refund paid to the Account Owner shall be equal to the Redemption Value of the Account at the time the refund is made. In the event a Contract is terminated under any of the conditions described in items (ii)–(iv) above, the amount of the refund paid to the Refund Recipient shall be equal to the Redemption Value of the Account at the time the refund is made, minus any applicable fee charged by the Board. The Actual termination of the Contract will not occur until all funds in the Beneficiary’s Account have been refunded. (e) Rollovers Out of the Program. The Account Owner may rollover all or a portion of the funds in the Beneficiary’s Account to an Account established for the same Beneficiary or another Beneficiary under another qualified tuition program established under Section 529 or Section 529(A) of the Internal Revenue Code and the regulations promulgated thereunder by making a rollover request to the Board in such manner as may be prescribed by the Board. If the rollover is for the benefit of another Beneficiary, the Beneficiary to whose Account the funds are being transferred must be a “Member of the Family” of the original Beneficiary, as such term is defined in Rule 1700-05-04- EDUCATIONAL INVESTMENT PLAN CHAPTER 1700-05-04 .01(2). Any rollover under this Rule shall be administered in accordance with the applicable rollover provisions of the Internal Revenue Code. Any rollover made under this Paragraph shall be equal to the amount requested, not to exceed the Redemption Value of the Beneficiary’s Account, minus any applicable fees charged by the Board pursuant to Rule 1700-05-04-.03(6) above. The Redemption Value of the Account shall be determined as of the date the rollover is made.