Wisconsin Legislature: Chapter DFI-CSP 1

Ch. DFI-CSP 1 NoteNote: Chapter Treas 1 was created as an emergency rule effective January 7, 2002. Chapter Treas 1 was renumbered chapter Adm 81 under s. 13.92 (4) (b) 1., Stats., Register December 2011 No. 672. Chapter Adm 81 was renumbered chapter DFI-CSP 1 under s. 13.92 (4) (b) 1., Stats., Register October 2017 No. 742.

DFI-CSP 1.01DFI-CSP 1.01 Purpose and analysis. This chapter establishes the procedures, standards and eligibility requirements for investment in accounts under the Wisconsin college savings program, into which a participant may invest funds to be used by individual beneficiaries to pay the cost of attendance at an institution of higher education. The Wisconsin college savings program is established as a qualified tuition program pursuant to section 529 of the internal revenue code [26 USC 529], and is administered by the department.

DFI-CSP 1.01 NoteNote: The application form referenced in s. DFI-CSP 1.04 (1) and the distribution request form referenced in s. DFI-CSP 1.11 (2) are available on the Wisconsin College Savings Program website at: www.edvest.com, or by writing to: EdVest, P.O. Box 7864, Madison, WI 53707-7864.

DFI-CSP 1.01 HistoryHistory: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03; correction made under s. 13.92 (4) (b) 6., Stats., Register December 2011 No. 672.

DFI-CSP 1.02DFI-CSP 1.02 Definitions. In this chapter:

DFI-CSP 1.02(1)(1) “Account” means a formal record of transactions maintained for a particular designated beneficiary to meet qualified higher education expenses under the program.

DFI-CSP 1.02(2)(2) “Account owner” has the meaning set forth in s. 224.50 (1) (a), Stats.

DFI-CSP 1.02(3)(3) “Board” means the Wisconsin college savings program board.

DFI-CSP 1.02(4)(4) “Cash” includes checks, money orders, wire transfers, or electronic funds transfers through payroll deduction, automatic contribution plans or similar methods, but does not include currency.

DFI-CSP 1.02(5)(5) “Contribution” means any payment directly allocated to an account for the benefit of a designated beneficiary or that is used to pay administrative or other fees associated with the account.

DFI-CSP 1.02(6)(6) “Department” means the Wisconsin department of financial institutions.

DFI-CSP 1.02(7)(7) “Designated beneficiary” has the meaning found in section 529 (e) (1) of the internal revenue code.

DFI-CSP 1.02(8)(8) “Eligible educational institution” has the meaning found in section 529 (e) (5) of the internal revenue code.

DFI-CSP 1.02(9)(9) “Maximum contribution limit” is the sum total market value amount established by the board that may be accumulated in the accounts of a designated beneficiary to meet qualified higher education expenses.

DFI-CSP 1.02(10)(10) “Member of the family” has the meaning found in section 529(e)(2) of the internal revenue code.

DFI-CSP 1.02(11)(11) “Non-qualified distribution” means any distribution of funds from an account that is not a qualified distribution.

DFI-CSP 1.02(12)(12) “Person” includes an individual, a trust, or a body corporate or politic.

DFI-CSP 1.02(13)(13) “Program” means the qualified tuition program established under s. 224.50, Stats.

DFI-CSP 1.02(14)(14) “Program description and participation agreement” means the contract between an account owner and the board setting forth the terms and conditions under which the account owner participates in the program.

DFI-CSP 1.02(15)(15) “Program manager” means the entity under contract with the department to serve as the program administrator, marketing agent and investment manager of the program.

DFI-CSP 1.02(16)(16) “Qualified distribution” means any distribution of funds, as defined in section 529 of the internal revenue code, for qualified higher education expenses from an account pursuant to a distribution request from the account owner.

DFI-CSP 1.02(17)(17) “Qualified higher education expenses” includes any expense treated as a “qualified higher education expense” under section 529 of the internal revenue code.

DFI-CSP 1.02(18)(18) “Qualified tuition program” means a savings program to help defray the cost of college expenses under section 529 of the internal revenue code.

DFI-CSP 1.02(19)(19) “Rollover contribution” means the transfer of all or part of an account from one qualified tuition program account to another qualified tuition program account.

DFI-CSP 1.02 HistoryHistory: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03; correction in (2), (13) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672; correction in (6) made under s. 13.92 (4) (b) 6., Stats., and correction in (2), (13) made under s. 13.92 (4) (b) 7., Stats., Register October 2017 No. 742; CR 19-120: am. (17) Register May 2020 No. 773, eff. 6-1-20.

DFI-CSP 1.03DFI-CSP 1.03 Account owner eligibility. Any person legally able to contract under applicable state law is eligible to establish an account for the benefit of a designated individual. To the extent permitted by section 529 of the internal revenue code, there may be more than one account owner per account.

DFI-CSP 1.03 HistoryHistory: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03; CR 19-120: am. Register May 2020 No. 773, eff. 6-1-20.

DFI-CSP 1.04DFI-CSP 1.04 Opening an account.

DFI-CSP 1.04(1)(1) To open an account, an applicant shall submit a properly completed and signed application, which incorporates the program description and participation agreement, to the program manager. A contribution may be made as provided in s. DFI-CSP 1.09 or by any alternate method established by the board or the program manager.

DFI-CSP 1.04(2)(2) An applicant shall select an available investment option in which all contributions to the account shall be invested. After an account has been opened, the investment option selected may only be changed as permitted under section 529 of the internal revenue code and any regulations issued thereunder.

DFI-CSP 1.04(3)(3) The participation agreement shall be accompanied by a program description supplied by the program manager disclosing the program characteristics, including the investment options, investment risks, program fees, and other information as determined by the board and the program manager.

DFI-CSP 1.04(4)(4) Acceptance by the program manager of application materials, the initial contribution, or selection of contribution method for processing shall not be deemed an agreement to open an account.

DFI-CSP 1.04(5)(5) The program manager shall accept applications to open accounts and accept subsequent contributions for a designated beneficiary in the order they are received, up to the maximum contribution limit.

DFI-CSP 1.04(6)(6) Upon determining that an application has met all the requirements for opening an account, the program manager shall notify the applicant in writing that an account has been established.

DFI-CSP 1.04 HistoryHistory: CR 02-009: cr. Register January 2003 No. 565, eff. 2-1-03; correction in (1) made under s. 13.92 (4) (b) 7., Stats., Register December 2011 No. 672; correction in (1) made under s. 13.92 (4) (b) 7., Stats., Register October 2017 No. 742.

DFI-CSP 1.05DFI-CSP 1.05 Refusal to open an account. The program manager or the board may refuse to open an account for any of the following reasons:

DFI-CSP 1.05(1)(1) The applicant is not an eligible account owner.

DFI-CSP 1.05(2)(2) The applicant has not provided all of the information required in the application.

DFI-CSP 1.05(3)(3) The maximum contribution level for the proposed designated beneficiary has already been met.