Minnesota Statutes 256Q.03 – Definitions
Terms Used In Minnesota Statutes 256Q.03
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: may extend and be applied to bodies politic and corporate, and to partnerships and other unincorporated associations. See Minnesota Statutes 645.44
- Power of attorney: A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies. Source: OCC
- state: extends to and includes the District of Columbia and the several territories. See Minnesota Statutes 645.44
Subdivision 1.Scope.
For the purposes of this chapter, the terms defined in this section have the meanings given them.
Subd. 2.ABLE account.
“ABLE account” has the meaning given in section 529A(e)(6) of the Internal Revenue Code.
Subd. 3.ABLE plan or plan.
“ABLE plan” or “plan” means the qualified ABLE program, as defined in section 529A(b) of the Internal Revenue Code, provided for in this chapter.
Subd. 4.Account.
“Account” means the formal record of transactions relating to an ABLE plan beneficiary.
Subd. 5.Account owner.
“Account owner” means the designated beneficiary of the account.
Subd. 6.Annual contribution limit.
“Annual contribution limit” has the meaning given in section 529A(b)(2) of the Internal Revenue Code.
Subd. 7.Application.
“Application” means the form executed by a prospective account owner to enter into a participation agreement and open an account in the plan. The application incorporates by reference the participation agreement.
Subd. 8.Board.
“Board” means the State Board of Investment.
Subd. 9.Commissioner.
“Commissioner” means the commissioner of human services.
Subd. 10.Contribution.
“Contribution” means a payment directly allocated to an account for the benefit of a beneficiary.
Subd. 11.Department.
“Department” means the Department of Human Services.
Subd. 12.Designated beneficiary or beneficiary.
“Designated beneficiary” or “beneficiary” has the meaning given in section 529A(e)(3) of the Internal Revenue Code and further defined through regulations issued under that section.
Subd. 13.Earnings.
“Earnings” means the total account balance minus the investment in the account.
Subd. 14.Eligible individual.
“Eligible individual” has the meaning given in section 529A(e)(1) of the Internal Revenue Code and further defined through regulations issued under that section.
Subd. 15.Executive director.
“Executive director” means the executive director of the State Board of Investment.
Subd. 16.Internal Revenue Code.
“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.
Subd. 17.Investment in the account.
“Investment in the account” means the sum of all contributions made to an account by a particular date minus the aggregate amount of contributions included in distributions or rollover distributions, if any, made from the account as of that date.
Subd. 18.Member of the family.
“Member of the family” has the meaning given in section 529A(e)(4) of the Internal Revenue Code.
Subd. 19.Participation agreement.
“Participation agreement” means an agreement to participate in the Minnesota ABLE plan between an account owner and the state through its agencies, the commissioner, and the board.
Subd. 20.Person.
“Person” means an individual, trust, estate, partnership, association, company, corporation, or the state.
Subd. 21.Plan administrator.
“Plan administrator” means the person selected by the commissioner and the board to administer the daily operations of the ABLE plan and provide record keeping, investment management, and other services for the plan.
Subd. 22.Qualified disability expense.
“Qualified disability expense” has the meaning given in section 529A(e)(5) of the Internal Revenue Code and further defined through regulations issued under that section.
Subd. 23.Qualified distribution.
“Qualified distribution” means a withdrawal from an ABLE account to pay the qualified disability expenses of the beneficiary of the account. A qualified withdrawal may be made by the beneficiary, by an agent of the beneficiary who has the power of attorney, or by the beneficiary’s legal guardian.
Subd. 24.Rollover distribution.
“Rollover distribution” means a transfer of funds made:
(1) from one account in another state’s qualified ABLE program to an account for the benefit of the same designated beneficiary or an eligible individual who is a family member of the former designated beneficiary; or
(2) from one account to another account for the benefit of an eligible individual who is a family member of the former designated beneficiary.
Subd. 25.Total account balance.
“Total account balance” means the amount in an account on a particular date or the fair market value of an account on a particular date.