15 CSR 50-4.030 - Missouri MOST 529 Matching Grant Program
(1)
Definitions.
(A) Existing Missouri
Definitions. The following terms, as used in this rule, are defined in section
166.410, RSMo: Beneficiary,
Board, Eligible Educational Institution, Participation Agreement, and Program.
The following terms, as used in this rule, are defined in the Missouri
Code of State Regulations,
15 CSR
50-4.020(2): Account Owner, Member of
the Family, Non-qualified Withdrawal, Qualified Withdrawal, and
Participant.
(B) Additional
Definitions. The following definitions shall also apply to the following terms
as they are used in this rule:
1. "MOST
Matching Grant" means funds granted to an eligible account owner pursuant to
the MOST 529 Matching Grant Program;
2. "MOST Matching Grant Account" means an
account maintained for a beneficiary in which MOST matching grant funds are
deposited;
3. "MOST Matching Grant
Application" means the application required to be submitted by an account owner
to be considered for a MOST matching grant;
4. "Plan Account" means the account in the
program established by a participant and maintained for a beneficiary;
and
5. "Plan Description" means the
MOST-Missouri's 529 Education Plan Program Description.
(2) Program Description. The MOST
529 Matching Grant Program is a limited grant program administered by the board
as set forth below. The MOST 529 Matching Grant Program is funded with money
provided by the program manager of the program. The program may not be funded
every year. When funded, funds are limited and, in any given year, may be
capped by the board in an amount determined by the board to ensure availability
of funds for the duration of the grant program. The funds will be granted to
eligible applicants on a first-come, first-served basis.
(3) MOST Matching Grant Awards.
(A) Applicants who are approved by the board
will receive a match rate of one dollar ($1) for every one dollar ($1)
contributed in a calendar year, up to a yearly match limit of five hundred
dollars ($500).
(B) The lifetime
maximum match amount for a beneficiary is two thousand five hundred dollars
($2,500).
(C) Applicants submitting
an application during the enrollment period are eligible to receive matching
funds for contributions to a plan account made in the same calendar year. For
example, applicants who are awarded the MOST matching grant for the 2012
enrollment period will receive matching funds for contributions made to a plan
account from January 1 to December 31, 2012.
(D) Applicants who are awarded a MOST
matching grant will typically receive the funds between January 1 and January
31 in the year following the approval of the MOST matching grant application
and the funds will be invested according to the account owner's current
allocation instructions on file for the account owner's plan account.
(4) Eligibility Requirements. To
be eligible to receive a MOST matching grant, the applicant must meet the
following eligibility guidelines:
(A) The
beneficiary must be a Missouri resident;
(B) The beneficiary may not be older than
thirteen (13) years of age at the time the first MOST matching grant
application is approved;
(C) The
household adjusted gross income of the parent(s) or legal guardian(s) of the
beneficiary in the year prior to applying for a MOST matching grant may not
exceed seventy-four thousand nine hundred ninety-nine dollars
($74,999);
(D) The applicant must
be a Missouri resident who is an account owner who is a parent, legal guardian,
or foster parent of the beneficiary; and
(E) Only one (1) MOST matching grant account
may be opened for any beneficiary.
(5) Application Requirements.
(A) The applicant must have opened a plan
account for the intended beneficiary.
(B) The applicant must enclose with the MOST
matching grant application a Missouri state income tax return establishing that
the beneficiary's household adjusted gross income falls within the eligibility
requirements. If the parent(s) or legal guardian(s) of the beneficiary were not
required to file a Missouri state income tax return, they must provide other
evidence of residency and household income acceptable to the board.
(C) The beneficiary's Social Security number
on the applicant's plan account must match the beneficiary's Social Security
number on the matching grant application.
(D) Matching grant applications will be
accepted on a first-come, first-served basis.
(E) Applicants must submit a matching grant
application during the enrollment period as set by the board.
(F) Applicants must reapply for the MOST
matching grant each year that it is offered in order to be eligible to receive
funds for that year.
(6)
MOST Matching Grant Accounts.
(A) The MOST
matching grant account will be linked to the applicant's plan account and shall
be governed by the terms and conditions of the plan description and the related
participation agreements and supplements thereto, as amended from
time-to-time.
(B) The plan shall
retain control of the assets in the MOST matching grant account until the
account owner submits a request in good order for a qualified withdrawal to an
eligible educational institution.
(C) To withdraw funds from a MOST matching
grant account, the withdrawal must be a qualified withdrawal to an eligible
educational institution.
(D) Under
certain circumstances, the MOST matching grant and any earnings made may be
fully or partially forfeited and a MOST matching grant account could be closed.
These circumstances include:
1. A change in
beneficiary when the new beneficiary has previously received a MOST matching
grant or is not an eligible member of the family of the former
beneficiary;
2. The event of the
death of a beneficiary or the disability of the beneficiary which precludes him
or her from attending an eligible educational institution, unless the account
owner changes the beneficiary to an eligible member of the family of the former
beneficiary; and
3. A non-qualified
withdrawal or rollover to another state's 529 plan is made from the plan
account and the remaining plan account balance falls below the balance of the
MOST matching grant account, unless, within eighteen (18) months, the account
owner contributes funds to the plan account to prevent forfeiture of that
portion of the MOST matching grant account that does not have corresponding
funds in the plan account.
(E) For beneficiaries who have a MOST
matching grant account, any qualified withdrawals to an eligible educational
institution generally will be taken proportionally from the plan account and
the related MOST matching grant account at the time the qualified withdrawal is
requested to be sent to the eligible educational institution. If the qualified
withdrawal amount requested would cause the MOST matching grant account to have
a market value under ten dollars ($10), the pro-rated amount of the qualified
withdrawal will be adjusted so that the MOST matching grant account is fully
liquidated, and the amount taken from the plan account will be reduced
accordingly. If the qualified withdrawal amount requested will result in a
withdrawal from the MOST matching grant account which is less than ten dollars
($10), the distribution will be adjusted so that the entire amount of
withdrawal will be taken from the plan account.
(F) MOST matching grant accounts will not be
subject to the ten dollar ($10) annual account fee. MOST matching grant
accounts are, however, subject to fees and charges that otherwise apply to a
plan account as described in the program description.
Notes
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