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Chapter 1 Golden State Scholarshare Trust Program Application of Cancellation Penalty and Limitation of Contributions   

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(a) Excess Contribution. The program administrator or his or her designee shall warn account owners against excess contributions.

(b) Return of Excess Contributions. Contributions for any designated beneficiary shall be rejected and returned to the extent that the amount of the contribution would cause the aggregate amount held for that beneficiary to exceed the applicable maximum account balance limit, as determined in accordance with Section 529 of the Internal Revenue Code. Accounts that have reached the maximum account balance limit may continue to accrue earnings.

Authority cited:

Education Code 69981(d)

Education Code 69982(h)

Reference:

Education Code 69981(d)

Education Code 69982(j)

Education Code 69983(g)

Education Code 69985

Education Code 69986(b), (d) and (e)

Probate Code 3900-3925

Internal Revenue Code 529(b)(3) and (7)

(Amended by Register 2003, No. 49)