Mich. Comp. Laws § 206.981
Short title.
This act shall be known and may be cited as the "Michigan achieving a better life experience (ABLE) program act".
Michigan Compiled Laws — MICHIGAN ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) PROGRAM ACT (Act 160 of 2015)
Michigan · statute · 160 of 2015, Mich. Comp. Laws · 17 active provisions
Mich. Comp. Laws § 206.982
Definitions.
As used in this act: (a) "ABLE" means achieving a better life experience. (b) "ABLE savings account" or "account" means an account established under this act. (c) "Account owner" means an individual who is a resident of this state, or a resident of a contracting state, and who enters into a Michigan ABLE savings progra…
Mich. Comp. Laws § 206.983
Michigan ABLE savings program; establishment; program manager; purposes, powers, and duties of state treasurer or designee; selection of program managers; proposals; factors; duties of treasurer and program manager; contract.
(1) The Michigan ABLE savings program is established in the department of treasury. The program shall consist of more than 1 program manager and shall provide multiple savings plans. (2) The treasurer shall solicit proposals from entities to be a program manager to provide the services described in subsection (5). (3)…
Mich. Comp. Laws § 206.984
Management contract; supervision.
The treasurer shall be responsible for the ongoing supervision of each management contract.
Mich. Comp. Laws § 206.985
Management contract; term of years; termination.
(1) A management contract shall be for a term of years specified in the management contract. (2) The treasurer may terminate a management contract based on the criteria specified in the management contract.
Mich. Comp. Laws § 206.986
Contracts as necessary and proper.
The treasurer may enter into contracts that it considers necessary and proper for the implementation of this program.
Mich. Comp. Laws § 206.987
ABLE savings accounts; establishment; opening of account by individual or designated representative; agreement; form; contents; contributions; exemption from creditor process; distributions; separate accounting.
(1) Beginning January 1, 2016, ABLE savings accounts may be established under this act. (2) Any individual who is a resident of this state or a resident of a contracting state may open an ABLE savings account to save money to pay the qualified disability expenses of the designated beneficiary. Each account opened under…
Mich. Comp. Laws § 206.988
Changes in account owners or designated beneficiaries; transfers.
(1) Changes in account owners or designated beneficiaries are permitted as follows: (a) An account owner may change the designated beneficiary of an account to another eligible individual who is a member of the family of the previously designated beneficiary. (b) An account owner may transfer all or a portion of an acc…
Mich. Comp. Laws § 206.989
Directing investment of contributions in violation of internal revenue code; prohibition; administrative services; use of interest as loan security.
(1) An account owner shall not, directly or indirectly, direct the investment of any contributions to an account or the earnings on an account in violation of section 529A of the internal revenue code. An account owner may select among different investment strategies designed by a program manager to the extent allowed…
Mich. Comp. Laws § 206.990
Maximum account balance limit.
(1) The maximum account balance limit for an ABLE account shall not exceed the maximum amount allowed for an education savings account pursuant to section 10 of the Michigan education savings program act, 2000 PA 161, MCL 390.1480. (2) The program manager shall notify an account owner if the annual contributions to an…
Mich. Comp. Laws § 206.991
Submission of certain information to internal revenue service, department, and account owner.
(1) In accordance with section 529A(d) of the internal revenue code, each program manager shall submit both of the following to the internal revenue service and the department: (a) A notice upon the establishment of each ABLE savings account. The notice must contain the name and state of residence of the designated ben…
Mich. Comp. Laws § 206.992
Disclosure of information to account owner and other person requesting information.
Each program manager shall disclose the following information in writing to each account owner of an ABLE savings account and any other person who requests information about an ABLE savings account: (a) The terms and conditions for establishing an ABLE savings account. (b) Restrictions on the substitutions of designate…
Mich. Comp. Laws § 206.993
Construction and interpretation of act and agreement.
This act and any agreement under this act shall not be construed or interpreted to do any of the following: (a) Give any designated beneficiary any rights or legal interest with respect to an account unless the designated beneficiary is the account owner. (b) Give residency status to an individual merely because the in…
Mich. Comp. Laws § 206.994
State obligation.
(1) This act does not create and shall not be construed to create any obligation upon this state or any agency or instrumentality of this state to guarantee for the benefit of an account owner or designated beneficiary any of the following: (a) The rate of interest or other return on an account. (b) The payment of inte…
Mich. Comp. Laws § 206.995
Annual report.
Each program manager shall file an annual report with the treasurer that includes all of the following: (a) The names and identification numbers of account owners and designated beneficiaries. The information reported pursuant to this subdivision is not subject to the freedom of information act, 1976 PA 442, MCL 15.231…
Mich. Comp. Laws § 206.996
Tax exemption.
(1) Contributions to and interest earned on an ABLE savings account are exempt from taxation as provided in section 30 of the income tax act of 1967, 1967 PA 281, MCL 206.30. (2) Withdrawals made from ABLE savings accounts are taxable as provided in section 30 of the income tax act of 1967, 1967 PA 281, MCL 206.30.
Mich. Comp. Laws § 206.997
Consideration of financial circumstances for purpose of assistance program; effect of ABLE savings account.
(1) Notwithstanding any other provision of law regarding an assistance program offered by this state that requires consideration of 1 or more financial circumstances of an individual, for the purpose of determining eligibility to receive, or the amount of, any assistance or benefit authorized by that provision to be pr…