Comments may be submitted to the contact person shown below no later than the date on which the public hearing on this proposed rule order is conducted. Information as to the place, date and time of the public hearing will be published in the Wisconsin Administrative Register.
By mail: Mark Schlei, Deputy Chief Legal Counsel, Department of Financial Institutions, PO Box 8861, Madison, WI 53708-8861.
By delivery: Mark Schlei, Deputy Chief Legal Counsel, 4822 Madison Yards Way, North Tower, Madison, WI 53703.
SECTION 1. DFI-CSP 1.02(17) is amended to read:
DFI-CSP 1.02(17) “Qualified higher education expenses” has the meaning found in includes any
expense treated as a “qualified higher education expense” under section 529(e)(3) of the internal
revenue code.
SECTION 2. DFI-CSP 1.03 is amended to read:
DFI-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 shall may be only more than one account owner per account.
SECTION 3. DFI-CSP 1.09(4) is amended to read:
DFI-CSP 1.09(4) ROLLOVER CONTRIBUTIONS. If rollover distributions are allowed by another
state's qualified tuition program, an account owner may deposit all or part of the funds from an
account in that state's qualified tuition program to a new account in the program as provided
under section 529 of the internal revenue code, and any regulations issued thereunder Rollovers from another state’s qualified tuition program are permitted to the extent allowed by that state’s
program and by section 529 of the internal revenue code. When making a rollover contribution, the account owner shall complete the forms and make such disclosures of financial information as set forth in the program description and participation agreement. If the rollover distribution deposited in the program account would cause the total account balance of all accounts for that designated beneficiary to exceed the maximum contribution limit, the program manager shall refuse the excess funds.
SECTION 4. DFI-CSP 1.12 is amended to read:
DFI-CSP 1.12 Refund of qualified distribution payment. An eligible educational institution that owes a full or partial refund of a qualified distribution due to an overpayment of educational expenses or for any other reason shall pay the refund directly to the program manager for credit
to the applicable designated beneficiary's account. A refund may not be paid directly to the
designated beneficiary or account owner in any manner permitted by section 529 of the internal
revenue code.
SECTION 5. EFFECTIVE DATE. This rule shall take effect on the first day of the month following publication in the Wisconsin Administrative Register as provided in s. 227.22 (2) (intro.), Stats.
Department of Financial Institutions
Date: 04/23/2020 By: /s/ Matthew Lynch
Matthew Lynch Chief Legal Counsel
