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Chapter 1. Golden State Scholarshare Trust Program Rollover Distributions   

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(a) Rollover Distribution From Another Qualified Tuition Program. An account owner (other than a custodial account owner) may make a rollover distribution at any time from another qualified tuition program to an account, either owned by the same or a different account owner, by submitting a written request to the program administrator's designee and by complying with applicable federal and state law governing this transaction. The rollover distribution shall be effective provided that the transfer of funds does not cause the aggregate amount of contributions held for the new designated beneficiary to exceed the maximum account balance limit applicable to that beneficiary.

(b) Rollover of Account Funds Methods. A rollover of account funds from another qualified tuition program shall be effective through a direct transfer of funds from the other qualified tuition program to an account, or as a deposit of the funds by the account owner into an account within 60 days of withdrawal of the funds from the other qualified tuition program. Both the direct transfer of funds and the deposit of funds by the account owner must be accompanied by a written statement from the other qualified tuition program that identifies the portion of the amount directly transferred, or deposited, that represents contributions and the portion of the amount that represents earnings.

(c) Limitation of Rollover of Account Funds to Savings Program. A rollover distribution from another qualified tuition program shall not be accepted unless the funds are transferred from a tuition savings account as defined in Section 529(b)(1)(A)(ii) of the Internal Revenue Code.

(d) Transfer of Account Funds as Rollover Distribution. An account owner (other than a custodial account owner) may transfer funds from an account to another account either owned by the same or a different account owner at any time by submitting a written request to the program administrator's designee. The transfer of account funds shall be effective provided that: (1) the funds are transferred to an account for a new designated beneficiary who is a member of the family of the designated beneficiary of the account from which the funds are being transferred and the account owner so certifies in the written request (unless the entity making the rollover distribution is a state or local government agency or an entity described in Section 501(c)(3) of the Internal Revenue Code and identified in Section 30959(a)(2) in which case the account owner must certify that the newly designated beneficiary is not a member of the family of the current beneficiary); and (2) the transfer of funds does not cause the aggregate amount of contributions held for the new designated beneficiary to exceed the maximum account balance limit applicable to that beneficiary.

(e) Execution of New Participation Agreement. Any rollover distribution that is intended to transfer funds to a new account not yet established under the Act shall not be effective until the account owner who is to receive the transferred funds has submitted to the program administrator's designee a completed and signed participation agreement for the new account and the account has been established.

(f) Rollover Distribution to Another Qualified State Tuition Program. An account owner (other than a custodial account owner) may make a rollover distribution at any time from an account to another qualified tuition program by submitting a written request to the program administrator's designee and by complying with applicable federal and state law governing this transaction.

(1) The program administrator's designee shall treat the rollover distribution as a non-qualified distribution unless the program administrator's designee receives confirmation that the amount of the distribution has been deposited in another qualified tuition program within sixty (60) days of distribution from the account.

(g) Rollover Distributions Requested By Entity Account Owners. An entity account owner must provide with the written request for a rollover distribution substantiation that the rollover distribution is authorized by the entity and that the signer of the written request is authorized to conduct the transaction.

Authority cited:

Education Code 69981(d)

Education Code 69982(h)

Reference:

Education Code 69982(j)(1)

Education Code 69983(f)

Education Code 69986(h)

Revenue and Taxation Code 24306(c)(4)(A) and (B)

Internal Revenue Code 152(a)

Internal Revenue Code 529(b)(1)(A)(ii) and (c)(3)(C)

(Amended by Register 2003, No. 49)