Common use of Eligible Individual Clause in Contracts

Eligible Individual. In order to open an account and to receive the tax benefits afforded an Account Owner you must be an Eligible Individual. If the Account Owner ceases to be an Eligible Individual, beginning on the first day of the Account Owner’s first taxable year for which the Account Owner does not satisfy the definition of an Eligible Individual, additional contributions to the Account Owner’s account will not be accepted by the Plan. Additionally, during the time the Account Owner is not an Eligible Individual, none of the Account Owner’s expenses will be considered Qualified Disability Expenses. If the Account Owner subsequently re-qualifies as an Eligible Individual, contributions to the Account Owner’s account again may be accepted One account rule – The proposed Treasury regulations provide that except with respect to Rollovers, no Account Owner may have more than one ABLE account in existence at the same time. A prior ABLE account that has been closed does not prohibit the subsequent creation of another ABLE account for the same Account Owner. The proposed Treasury regulations provide that, in the event any ABLE account is opened for an Account Owner with an ABLE account already in existence, only the first such account created for that Account Owner qualifies as an ABLE account. Federal tax advantages – Contributions to a qualified ABLE program are not deductible for federal income tax purposes. There are two primary federal income tax advantages to investing in a qualified ABLE program.