[256B-1] Definitions. As used in this chapter, unless the context otherwise requires:

"Account" or "ABLE savings account" means an individual savings account established in accordance with this chapter.

"Account owner" means the person who enters into a savings agreement pursuant to this chapter.

"Designated beneficiary" means a resident of the State whose qualified disability expenses may be paid from the account.

"Director" means the director of finance.

"Eligible individual" means an individual who is entitled to benefits based on blindness or disability under title 42 United States Code section 401 et seq. or title 42 United States Code section 1381 et seq., as amended, and for whom blindness or disability occurred before the date on which the individual attained the age of twenty-six, or an individual who filed for the taxable year, a disability certification with and to the satisfaction of the Secretary.

"Financial organization" means an organization authorized to do business in the State that is:

(1) Licensed or chartered by the insurance commissioner;

(2) Licensed or chartered by the commissioner of financial institutions;

(3) Chartered by an agency of the federal government; or

(4) Subject to the jurisdiction and regulation of the federal Securities and Exchange Commission.

"Management contract" means the contract executed by the director of finance and a financial organization selected to act as a depository and manager of the program.

"Member of the family" has the same meaning defined in section 529A of the Internal Revenue Code of 1986, as amended.

"Nonqualified withdrawal" means a withdrawal from an account that is not:

(1) A qualified withdrawal; or

(2) A rollover distribution.

"Program" means the Hawaii ABLE savings program established under this chapter.

"Program manager" means a financial organization selected by the director of finance to act as a depository and manager of the program.

"Qualified disability expense" means any qualified disability expense included in section 529A of the Internal Revenue Code of 1986, as amended.

"Qualified withdrawal" means a withdrawal from an account to pay the qualified disability expenses of the designated beneficiary of the account.

"Rollover distribution" means a rollover distribution as defined in section 529A of the Internal Revenue Code of 1986, as amended.

"Savings agreement" means an agreement between the program manager or the director of finance and the account owner.

"Secretary" means the Secretary of the United States Department of the Treasury. [L 2015, c 206, pt of 2]

 

 

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