Definitions

For the purposes of these rules the following definitions shall apply: (1) “ABLE” means Achieving a Better Life Experience. (2) “Act” means Chapter 470 of the 2015 Public Acts. (3) “ABLE Account” means an account established by, owned by, and for the benefit of an Eligible Individual, who is also the Designated Beneficiary on the Account, and maintained under a Qualified ABLE Program for payment of the Eligible Individual’s Qualified Disability Expenses, as provided in the Act. (4) “Code” means § 529A of the Internal Revenue Code of 1986, codified in 26 U.S.C. § 529A, as amended, and all rules, regulations, notices, and interpretations released by the United States department of treasury, including the internal revenue service. (5) “Contract” means a contract for an Eligible Individual’s participation in the State’s Qualified ABLE Program. (6) “Contracting State” means a State without a Qualified ABLE Program that has entered into a contract with a State with a Qualified ABLE Program to provide residents of the Contracting State access to a Qualified ABLE Program. (7) “Contribution” or “Contributions” means any payment directly allocated to an ABLE Account for the benefit of a Designated Beneficiary. (8) “Contributor” means the Person or Persons contributing money to an ABLE Account. ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM CHAPTER 1700-08-01 (9) “Designated Beneficiary” means the Eligible Individual who has established and owns an ABLE Account, and for whose benefit the ABLE Account has been established. (10) “Disability Certification” means a certification that the Eligible Individual has a medically determinable physical or mental impairment, which results in marked and severe functional limitations, and which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months, or is blind within the meaning of § 1614(a)(2) of the Social Security Act; and such blindness or disability occurred before the date on which the individual attained age twenty-six (26); and includes a copy of the Eligible Individual’s diagnosis relating to the individual’s relevant impairment or impairments, signed by a physician meeting the criteria of § 1861(r)(1) of the Social Security Act. (11) “Distribution” means any payment from an ABLE Account, except for a Program-to-Program Transfer. (12) “Eligible Individual” means an individual who 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 twenty-six (26), or a Disability Certification with respect to such individual filed with the Secretary of the United States department of the treasury for such taxable year. The Eligible Individual is the ABLE Account owner and the Designated Beneficiary on the ABLE Account. (13) “Excess Contribution” means the amount contributed to an ABLE Account during the taxable year of the Designated Beneficiary that exceeds the limit in effect under 26 U.S.C. § 2503(b) for the calendar year in which the taxable year of the Designated Beneficiary begins, unless such contribution is otherwise permitted by the Code. (14) “Excess Aggregate Contribution” means the amount contributed to an ABLE Account during the taxable year of the Designated Beneficiary that causes the total amounts contributed since the establishment of the ABLE Account (or of an ABLE Account for the same Designated Beneficiary that was rolled into the current ABLE Account) to exceed the limit in effect under 26 U.S.C. § 529(b)(6). (15) “Individualized Education Account or IEA” means an account created pursuant to T.C.A. §§ 49-10-1401 through 49-10-1406. (16) “Legal Representative” means an individual who or entity that may neither have nor acquire any beneficial interest in an ABLE Account during the lifetime of the Designated Beneficiary, but can act on behalf of and for the benefit of a Designated Beneficiary for the purpose of establishing, maintaining, transacting, and terminating an ABLE Account. Not inconsistent with the Code, a legal representative shall include, but not be limited to, an individual or entity with a power of attorney, or parent or legal guardian. (17) “Member of the Family” means a Designated Beneficiary’s sibling, whether by blood or by adoption, which includes a brother, sister, stepbrother, stepsister, half-brother, and half- sister. (18) “Person” means an individual, association, corporation, trust, charitable organization, or other such entity. (19) “Program-to-Program Transfer” means the direct transfer of the entire balance of an ABLE Account into an ABLE Account of the same designated beneficiary in which the transferor ABLE Account is closed upon completion of the transfer, or of part or all of the balance to an ABLE Account of another Eligible Individual who is a Member of the Family of the former ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM CHAPTER 1700-08-01 Designated Beneficiary, without any intervening Distribution or deemed Distribution to the Designated Beneficiary. (20) “Rollover” means a Contribution to an ABLE Account of a Designated Beneficiary (or of an Eligible Individual who is a Member of the Family of the Designated Beneficiary) of all or a portion of an amount withdrawn from the Designated Beneficiary’s ABLE Account, provided the Contribution is made within sixty (60) days of the date of the Distribution and, in the case of a Rollover to the Designated Beneficiary’s ABLE Account, no rollover has been made to an ABLE Account of the Designated Beneficiary within the prior twelve (12) months. (21) “Qualified ABLE Program” or “Program” means the ABLE program that is a qualified program pursuant to and in compliance with the Code, and that is created pursuant to the Act. (22) “Qualified Disability Expenses” means any expenses related to the Eligible Individual’s blindness or disability which are made for the benefit of an Eligible Individual who is the Designated Beneficiary. Qualified disability expenses include expenses for the following: education; housing; transportation; employment training and support; assistive technology and personal support services; health; prevention and wellness; financial management and administrative services; legal fees; expenses for oversight and monitoring; funeral and burial expenses; and other expenses approved pursuant to the Code. (23) “Redemption Value” means the current cash value of an ABLE Account attributable to the sum of the principal invested, and the earnings or losses incurred thereon. (24) “Refund” means the Redemption Value of the ABLE Account at the time the refund is made, minus any applicable fee charged by the State. (25) “State” means the State of Tennessee. (26) “Trustees” means state treasurer; the commissioner of finance and administration; the chair of the finance, ways and means committee of the Senate; and the chair of the finance, ways and means committee of the House of Representatives.