OAR 813-300-0080
Fiduciary Organization Use of Tax Credit Contributions and Related Funds
(1)
Oregon individual development account tax credit contributions to fiduciary organizations, other contributions to fiduciary organizations specifically for their program plan, and any supplemental funds from the Department or its designee to fiduciary organizations shall be used by fiduciary organizations solely for reasonable and documented program plan purposes consistent with these rules.(2)
In addition to any other limitations on supplemental funds imposed by the Department or its designee when providing such supplemental funds to fiduciary organizations, the following limitations apply to the use of tax credit contributions and related funds:(a)
Fiduciary organizations only may expend tax credit contributions and related funds in a manner consistent with their budget as approved by the Department or its designee;(b)
Fiduciary organizations may expend up to an amount authorized in writing by the Department and its designee for reimbursement of reasonable and appropriate administrative and program operational costs;(d)
Fiduciary organizations may not expend supplemental funds for administering the solicitation of tax credit contributions;(e)
Fiduciary organizations may expend tax credit contributions and related funds for appropriate matching of account holder IDA deposits as follows:(A)
Allowable matching IDA deposits by fiduciary organizations must equal at least $1, but not exceed $5, for each $1 of IDA deposits by the account holder;(B)
Matching IDA deposits must be placed in:(i)
A savings account with an approved financial institution jointly held by the account holder and the fiduciary organization and requiring the signatures of both for withdrawals;(ii)
A savings account with an approved financial institution that is controlled by the fiduciary organization and is separate from the savings account of the account holder; or(iii)
In the case of an account established for the purpose described in ORS 458.685 (Approved purpose of account)(1)(c), a qualified tuition savings program account under ORS 178.300 (Definitions for ORS 178.300 to 178.360) to 178.360 (Consideration of amounts in accounts for higher education expenses in benefit eligibility determinations), in which the fiduciary organization is the Account Owner as defined in ORS 178.300 (Definitions for ORS 178.300 to 178.360).(C)
The aggregate maximum amount of matching IDA funds that a fiduciary organization may deposit with respect to a specific account holder shall not exceed more than $3,000 in a 12-month period; and(D)
The aggregate maximum amount of matching IDA funds that a fiduciary organization may deposit with respect to a specific account holder during the existence of that account holder’s IDA shall not exceed $20,000.(f)
Supplemental funds not expended, obligated or deposited consistent with these rules within one year from the date that such supplemental fnds are received from the Department or its designee shall be returned immediately to the Department or its designee; and,(3)
Reverted matching IDA deposits must be used by fiduciary organizations to make matching IDA deposits for eligible account holders consistent with these rules as soon as is reasonably practicable.(4)
A fiduciary organization that is the account owner of a qualified tuition savings program account:(a)
May make a qualified withdrawal only at the direction of the designated beneficiary and only after the qualified tuition savings program account of the account holder that was established for the designated beneficiary has been reduced to a balance of zero exclusively through qualified withdrawals by the designated beneficiary; and(b)
May make nonqualified withdrawals only if the qualified tuition savings program account of the account holder that was established for the designated beneficiary has a balance of less than $100 or if the account holder or designated beneficiary has granted permission to make the withdrawal. Moneys received by a fiduciary organization from such a nonqualified withdrawal must be used for program plan purposes.
Source:
Rule 813-300-0080 — Fiduciary Organization Use of Tax Credit Contributions and Related Funds, https://secure.sos.state.or.us/oard/view.action?ruleNumber=813-300-0080.