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Rule: 42.15.805 Prev     Up     Next    
Rule Title: DEFINITIONS
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Department: REVENUE
Chapter: INCOME TAX
Subchapter: Family Education Savings Act
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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42.15.805    DEFINITIONS

In addition to the terms found in 15-62-103, MCA, which may be used in the rules of this sub-chapter, the following definitions also apply to this subchapter:

(1) "Act" means the Family Education Savings Act, as referenced in 15-62-101, MCA.

(2) "Child" means a son, stepson, daughter, stepdaughter, or legally adopted son or daughter of the taxpayer.

(3) "Distributee" means the account owner or designated beneficiary who withdraws the funds.

(4) The "potential recapture tax" is the lesser of the:

(a) recapture tax that would be applicable if the potentially recoverable withdrawal were a recoverable withdrawal and the entire contributions component of the withdrawal (as reasonably determined by the program manager) were attributable to deductible contributions; or

(b) amount the department determines to be the potential recapture tax.

(5) A "potentially recoverable withdrawal" is any withdrawal that the program manager would be required to report under ARM 42.15.804 as an early withdrawal and any other withdrawal that the account owner did not certify to the program manager as a qualified withdrawal or a withdrawal on account of the death, disability, or scholarship of the designated beneficiary.

(6) "Program" means the family education savings program established pursuant to the Act.

(7) "Program manager" means a financial institution selected pursuant to 15-62-203, MCA.

(8) "Recoverable withdrawal" means a nonqualified withdrawal, or a withdrawal from an account opened after April 30, 2001, if the withdrawal is made within three years of the date that the account was opened.

History: 15-30-2620, 15-62-201, MCA; IMP, 15-30-2110, 15-62-103, 15-62-201, MCA; NEW, 2000 MAR p. 1344, Eff. 5/26/00; AMD, 2004 MAR p. 1031, Eff. 4/23/04; AMD, 2010 MAR p. 1088, Eff. 4/30/10.


 

 
MAR Notices Effective From Effective To History Notes
42-2-820 4/30/2010 Current History: 15-30-2620, 15-62-201, MCA; IMP, 15-30-2110, 15-62-103, 15-62-201, MCA; NEW, 2000 MAR p. 1344, Eff. 5/26/00; AMD, 2004 MAR p. 1031, Eff. 4/23/04; AMD, 2010 MAR p. 1088, Eff. 4/30/10.
4/23/2004 4/30/2010 History: Sec. 15-30-305 and 15-62-201, MCA; IMP, 15-30-111, 15-62-103, and 15-62-201, MCA; NEW, 2000 MAR p. 1344, Eff. 5/26/00; AMD, 2004 MAR p. 1031, Eff. 4/23/04.
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