(a) As provided by the federal authorizing law, a person may make a contribution to a program account for the designated beneficiary.
(b) A person may not make a contribution to open or add to a program account unless the person makes the contribution by using a method of payment acceptable to the department.
(c) Any person may make a contribution to a program account, but the amount that the person may contribute is subject to the limits set by the federal authorizing law or the department.
(d) The department or the financial contractor shall reject or withdraw from a program account
(1) that part of a contribution that exceeds the limit established under (c) of this section; or
(2) the total amount of a contribution, if the department or the financial contractor determines that the
(A) value of the program account without the contribution is equal to or greater than the maximum limit established by the federal authorizing statute for the program account; or
(B) designated beneficiary is not an eligible individual during the calendar year in which the contribution is made.
(e) If a person makes a distribution from a program account during a calendar year, the financial contractor shall report the distribution to the federal Internal Revenue Service and to the account owner or the representative of the account owner.
(f) The report under (e) of this section must include the distribution information required by state and federal law.
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