166.508. Deposit program participation agreements, terms and conditions--contribution limits--minimum holding time for contributions.

MISSOURI STATUTES AND CODES

166.508. Deposit program participation agreements, terms and conditions--contribution limits--minimum holding time for contributions.

Deposit program participation agreements, terms andconditions--contribution limits--minimum holding time forcontributions.

166.508. 1. The board may enter into deposit program participationagreements with participants on behalf of beneficiaries pursuant to theprovisions of sections 166.500 to 166.529, including the following termsand conditions:

(1) A participation agreement shall stipulate the terms andconditions of the deposit program in which the participant makescontributions;

(2) A participation agreement shall specify the method forcalculating the return on the contribution made by the participant asotherwise provided in sections 166.500 to 166.529;

(3) The execution of a participation agreement by the board shall notguarantee that the beneficiary named in any participation agreement will beadmitted to an eligible educational institution, be allowed to continue toattend an eligible educational institution after having been admitted orwill graduate from an eligible educational institution;

(4) A participation agreement shall disclose to participants the riskassociated with depositing moneys with the board, including information onfederal insured deposit availability and coverage and penalties forwithdrawal before the deposit has matured;

(5) Participation agreements shall be organized and presented in away and with language that is easily understandable by the general public;and

(6) A participation agreement shall clearly and prominently discloseto participants the existence of any fee or similar charge assessed againstthe accounts of the participants for administration or services.

2. The board shall establish the maximum amount which may becontributed annually by a participant with respect to a beneficiary.

3. The board shall establish a total contribution limit for depositaccounts established under the deposit program with respect to abeneficiary to permit the deposit program to qualify as a qualified statetuition program pursuant to Section 529 of the Internal Revenue Code. Nocontribution may be made to a deposit account for a beneficiary if it wouldcause the balance of all deposit accounts of the beneficiary to exceed thetotal contribution limit established by the board. The board may establishother requirements that it deems appropriate to provide adequate safeguardsto prevent contributions on behalf of a beneficiary from exceeding what isnecessary to provide for the qualified higher education expenses of thebeneficiary.

4. The board shall establish the minimum length of time thatcontributions and earnings must be held by the deposit program to qualifypursuant to section 166.435. Any contributions or earnings that arewithdrawn or distributed from a deposit account prior to the expiration ofthe minimum length of time, as established by the board, shall be subjectto a penalty pursuant to section 166.514.