(a) Each savings agreement made pursuant to this chapter shall include, but shall not be limited to, the following terms and provisions:
(1) The maximum and minimum annual contributions and maximum account balance allowed on behalf of a designated beneficiary.
(2) Provisions for withdrawals, refunds, transfers, returns of excess contributions and any penalties.
(3) The terms and conditions for remitting contributions, including, but not limited to, that contributions may be made in cash only.
(4) The name, address, date of birth, and Social Security number of the designated beneficiary on whose behalf the ABLE or ACES savings account is opened.
(5) Terms and conditions for designation of a substitute beneficiary.
(6) Terms and conditions for termination of the account, including any transfers to the state upon the death of the qualified beneficiary, if applicable, refunds, withdrawals, transfers, applicable penalties, the name of the person entitled to any refund due as a result of termination, and the name of the person entitled to terminate the account.
(7) The time period during which the designated beneficiary is required to use benefits from the ABLE Program or ACES Program.
(8) All other rights and obligations of the contributor and the ABLE Program or ACES Program.
(9) Any other terms and conditions which the Savings Board deems necessary or appropriate, including those necessary to conform the ACES and ABLE Programs and savings agreements with the requirements of Sections 529 and 529A of the Internal Revenue Code of 1986, as amended, or other applicable federal law.
(10) If, after the specified time period determined by the Savings Board under which the designated beneficiary is required to use benefits from the ABLE Program or ACES Program, the savings agreement has not been terminated nor the designated beneficiary's rights exercised, the Savings Board, after making reasonable effort to contact the contributor, shall presume the savings account monies unclaimed and abandoned property, and thereafter administered in accordance with the Alabama Uniform Disposition of Unclaimed Property Act, Article 2 of Chapter 12 of Title 35.
(11) Participation in the ACES Program does not guarantee that sufficient funds will be available to cover qualified higher education expenses of a designated beneficiary.
(12) Notwithstanding any provision of any law to the contrary, money in the ABLE Program or ACES Program shall be exempt from creditor process and shall not be liable to attachment, garnishment, or other process, nor shall it be seized, taken, appropriated, or applied by any legal or equitable process or operation of law to pay any debt or liability of any contributor or beneficiary, provided, however, that the state of residency of the designated beneficiary of an ABLE savings account shall be a creditor of such account in the event of the death of the designated beneficiary.
(b) Nothing in this chapter shall make any provisions or warranties except as provided in savings agreements, including that a person shall be admitted to, allowed to continue in, graduated from a college or university, or conferred Alabama resident status.
(c) The state or any state agency, county, municipality, or any other employer in the state is hereby authorized, by contract, or otherwise, to agree with any employee to remit contributions through payroll deduction made by the appropriate official of the state, state agency, political subdivision, or other employer under the terms of a savings agreement.
Last modified: May 3, 2021