Tenn. Comp. R. & Regs. 1700-05-04-.05 - ACCOUNT MAINTENANCE

(1) Update Account Information. The Account Owner or any person authorized by the Account Owner may make changes and updates to the Account information as needed. These changes include, but are not limited to, addresses; legal name; phone numbers; email addresses; and changes to the designation of the Successor Account Owner. The changes must be provided in writing or via electronic means acceptable to the Board.

(2) Change of Beneficiary. Subject to the conditions set forth in Paragraph (5) below, the Account Owner shall have the right to change the Beneficiary of the Account at any time provided the New Beneficiary is a "Member of the Family" of the original Beneficiary, as such term is defined in Rule 1700-05-04-.01(2). If the Board has chosen to charge an application fee pursuant to Rule 1700-05-04-.03(6), then an application fee must be paid to change the Beneficiary of the Account.

(3) Reallocation of Funds Among Investment Options. Subject to the conditions set forth in Paragraph (5) below, the Account Owner shall have the right at any time to reallocate funds among investment options under a Contract held for a single Beneficiary.

(4) Transfer of Account Funds. Subject to the conditions set forth in Paragraph (5) below, the Account Owner shall have the right at any time to transfer all or a portion of the funds in the Beneficiary's Account to an Account for a different Beneficiary provided the New Beneficiary is a "Member of the Family" of the original Beneficiary, as such term is defined in Rule 1700-05-04-.01(2). If the transfer is for a portion of funds in the original Account, the transfer will be permitted so long as at the time the transfer is completed by the Board the existing Beneficiary and the new Beneficiary will each have at least twenty-five dollars ($25.00) in their respective Accounts. If the New Beneficiary does not have an existing Account and if the Board has chosen to charge an application fee pursuant to Rule 1700-05-04-.03(6), then an application fee must also be paid to open the new Account for the New Beneficiary. In addition and subject to the conditions set forth in Paragraph (5) below, the Account Owner shall have the right to transfer all or a portion of the funds in the Beneficiary's Account to another Account held for the same Beneficiary. If the Board has chosen to charge a transfer fee pursuant to Rule 1700-05-04-.03(6), then a transfer fee must be paid to transfer the funds.

(5) Conditions. Any change of Beneficiary, reallocation of funds among investment options, or transfer of funds under this Rule is subject to the following conditions:

(a) The request must be made in writing, signed by the Account Owner and, if applicable, must state the name and Social Security number of the proposed New Beneficiary. If the request is for the reallocation of funds among investment options, the written request must specify the amount to be reallocated and the selected investment option(s). If the request is for a transfer of funds to an existing Account, the written request must state the Account number to which the transfer is to be made;

(b) Payment of any applicable fees charged by the Board pursuant to Rule 1700-05-04-.03(6); and

(c) Transfers or changes in Beneficiaries under this Rule shall not be permitted to the extent that they would constitute excess contributions under Rule 1700-05-04-.04(3).

(6) Eligibility for Use. Any funds in the Account of a New Beneficiary may be used immediately, provided the funds have been on deposit in the original Beneficiary's Account for the twenty-one (21) day period prescribed in Rule 1700-05-04-.06(1) below.

(7) Limit on Reallocation of Funds Among Investment Options. The Account Owner may reallocate funds among investment options twice per calendar year or at such other times as permitted under Section 529 of the Internal Revenue Code and the regulations promulgated thereunder.

Notes

Tenn. Comp. R. & Regs. 1700-05-04-.05

Emergency rule filed December 29, 2011; effective through June 26, 2012. New rule filed December 29, 2011; effective May 30, 2012. Amendment filed April 11, 2014; effective September 28, 2014. Amendments filed March 5, 2018; effective June 3, 2018. Amendments filed September 25, 2018; effective December 24, 2018. Amendments filed November 15, 2022; effective 2/13/2023.

Authority: T.C.A. §§ 49-7-802, 49-7-805, 49-7-805(14), 49-7-805(16), 49-7-808, and 49-7-809.