(a) The participant may cancel a participation agreement at will and request refund of all of the available funds of an ABLE account less any amounts due for transfer to state, if applicable, at any time in a format approved by the Board.
(b) The Board shall determine the calculation method of any refunds due for cancellations, excess contributions, transfer to state, or death of the designated beneficiary.
(c) Any refunds due to cancellation or termination of an ABLE account, not including any amounts due for transfer to state, if applicable, will be payable to the designated beneficiary or participant on behalf of the designated beneficiary unless the Program is legally directed otherwise.
(d) Excess contributions will automatically be refunded to the contributor by the Program without earnings or interest.
(e) Distributions, including any earnings included in a refund, will be reported to the Internal Revenue Service, Social Security Administration, and any other state or federal agencies as required by law and may subject the distributee to income tax on any earnings and a tax penalty and could affect benefits or result in legal consequences.

Source Note: The provisions of this §7.195 adopted to be effective September 12, 2016, 41 TexReg 7111