Termination of Accounts. The Participant, the Program Manager, or the Trustee may terminate an Account as provided under the Act, the Code, or the Advisor Program rules. If the Trustee, or the Program Manager finds that the Participant or a Beneficiary has provided false or misleading information to the Trustee, the Program Manager, or an Eligible Educational Institution with respect to an Account, the Trustee, the Program Manager, may terminate the Account. The remaining Account balance may be distributed to the Participant and may be treated as a Non-Qualified Withdrawal that is subject to all applicable federal and state and/or local taxes, potentially including the additional 10% federal tax on earnings, for which the Participant shall be liable.
Appears in 2 contracts
Sources: Iadvisor 529 Plan Program Description and Participation Agreement, Iowa Advisor 529 Plan Program Description and Participation Agreement