Oregon Administrative Rules Chapter 173 - OREGON 529 SAVINGS BOARD
Oregon Administrative Rules (OAR) Chapter 173 specifically governs the Oregon 529 Savings Board. This Board is a crucial entity within the Oregon State Treasury that oversees the state's official education and disability savings programs.
The primary responsibility of the Oregon 529 Savings Board is to establish, oversee, and manage the Oregon 529 Savings Network, which includes:
Oregon College Savings Plan: A qualified tuition program (529 plan) designed to help individuals save for future higher education expenses, offering tax advantages under federal and state law.
Oregon ABLE Savings Plan: A qualified ABLE program (529A plan) designed to allow individuals with disabilities to save for qualified disability expenses without jeopardizing their eligibility for certain public benefits.
Here's a breakdown of the key areas typically covered in OAR Chapter 173, reflecting the Board's responsibilities:
Division 1: Procedural Rules:
Covers general administrative procedures for the Board, including rulemaking processes, public notice requirements, and the adoption of model rules of procedure.
Division 5: Administration:
Defines the organizational structure and responsibilities within the Oregon 529 Savings Network.
Outlines the role of the Executive Director, who is responsible for the day-to-day operations of the network.
Establishes how the Board will carry out its general and fiduciary responsibilities for the programs.
Division 6: Eligibility:
Sets criteria for who can be an account owner and a designated beneficiary for both College Savings Plans and ABLE Plans.
May include residency requirements or other conditions for participation.
Division 7: Change in Account Ownership or Designated Beneficiary:
Details the procedures and rules for transferring account ownership or changing the designated beneficiary of an account, in compliance with federal 529 and 529A regulations.
Division 8: Opening an Account; Application; Participation Agreement; General Administration:
Outlines the process for establishing a new 529 or ABLE account.
Specifies the information required for applications and the terms and conditions outlined in the participation agreement.
Division 9: Contributions:
Establishes rules regarding contributions to the plans, including:
Types of contributions allowed (e.g., cash contributions only).
Procedures for rollover contributions from other qualified plans (e.g., other 529 plans, Coverdell ESAs, or ABLE plans).
Maximum contribution limits to ensure compliance with federal tax laws (IRS 529 regulations typically cap total account balances rather than annual contributions, and the state sets its own aggregate limit).
Division 10: Distributions:
Governs the process for making withdrawals or distributions from accounts.
Defines what constitutes a "qualified education expense" for College Savings Plans and "qualified disability expenses" for ABLE Plans, in accordance with IRS guidelines.
Addresses procedures for non-qualified withdrawals and any potential state tax implications (e.g., recapture of prior state tax credits/deductions for non-qualified withdrawals).
Division 11: Termination of an Account:
Covers the conditions and procedures under which an account may be terminated.
Division 12: Fees:
Details the various fees associated with the plans, such as administrative fees, account maintenance fees, and underlying investment expenses.
Division 14: Investment Policies:
Outlines the investment options offered within the plans and the policies governing how contributions are invested.
May include rules for rebalancing or changing investment options.
Division 15: Confidentiality:
Addresses the confidentiality of account information and participant data, ensuring privacy in accordance with state and federal laws.
Division 16: Miscellaneous:
Covers any other general provisions or rules not specifically addressed in other divisions.
In essence, OAR Chapter 173 provides the granular rules and procedures that allow the Oregon 529 Savings Board to operate and manage the state's tax-advantaged college and disability savings programs, ensuring they remain compliant with federal tax law (IRC Sections 529 and 529A) and serve the financial planning needs of Oregon residents. The Board, chaired by the Oregon State Treasurer, meets regularly to oversee program policies and investments.
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