75-652. Definitions. As used in this act:

(a) "Account" or "ABLE savings account" means an individual savings account established in accordance with the provisions of this act.

(b) "Account owner" means the person who enters into an ABLE savings agreement pursuant to the provisions of this act. The account owner shall also be the designated beneficiary. A conservator, guardian or a person authorized by the treasurer through procedures established by the treasurer may act on behalf of a designated beneficiary of an account in accordance with procedures established by the treasurer.

(c) "Conservator" means a person appointed by the court pursuant to K.S.A. 59-3050 et seq., and amendments thereto.

(d) "Designated beneficiary" means a Kansas resident or a person authorized by the treasurer pursuant to K.S.A. 75-653, and amendments thereto, whose qualified disability expenses may be paid from the account. The designated beneficiary must be an eligible individual at the time the account is established.

(e) "Eligible individual" means the same as defined in section 529A of the federal internal revenue code of 1986, as amended.

(f) "Financial organization" means an organization authorized to do business in the state of Kansas and is:

(1) Licensed or chartered by the commissioner of insurance;

(2) licensed or chartered by the state bank commissioner;

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

(4) subject to the jurisdiction and regulation of the securities and exchange commission of the federal government.

(g) "Guardian" means a person appointed by the court pursuant to K.S.A. 59-3050 et seq., and amendments thereto.

(h) "Management contract" means the contract executed by the treasurer and a financial organization selected to act as a depository and manager of the program.

(i) "Member of the family" means the same as defined in section 529A of the federal internal revenue code of 1986, as amended.

(j) "Nonqualified withdrawal" means a withdrawal from an account which is not:

(1) A qualified withdrawal; or

(2) a rollover distribution.

(k) "Program" means the Kansas ABLE savings program established pursuant to this act.

(l) "Program manager" means a financial organization selected by the treasurer to act as a depository and manager of the program.

(m) "Qualified disability expense" means the same as defined in section 529A of the federal internal revenue code of 1986, as amended.

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

(o) "Rollover distribution" means a rollover distribution as defined in section 529A of the federal internal revenue code of 1986, as amended.

(p) "Savings agreement" means an agreement between the program manager or the treasurer and the account owner.

(q) "Secretary" means the secretary of the United States treasury.

(r) "Treasurer" means the state treasurer.

History: L. 2015, ch. 33, § 10; L. 2022, ch. 26, § 2; July 1.