(a) Upon a full or partial withdrawal of funds from an account that are not used for qualified disability expenses, the account owner or the account owner’s designee must receive the market value of the account for the amount requested.
(b) The Program Manager may collect administrative fees or charges for costs upon a non-qualified withdrawal or termination and deduct the fee from the amount otherwise payable. If there is a nonqualified withdrawal, and the amount withdrawn includes earnings on the contributions to the account or contributions to the account that are eligible to be deducted from Virgin Islands income tax for the tax year in which the contributions were made, the amount of earnings and deductible contributions are subject to taxation as income under the laws of the Virgin Islands.
(c) The Program Manager may close an account and return any remaining funds in the account as a nonqualified withdrawal in order to comply with federal law or if the Program Manager, in its sole discretion, determines that termination is in the best interest of the Program or the designated beneficiary. Any person aggrieved by a determination to terminate an account may file an administrative appeal with the Department not later than 30 days after the mailing date of the termination notice. A final resolution of the administrative appeal is the final decision of the Commissioner of Finance, and the aggrieved person may be appeal to the Superior Court of the Virgin Islands. The appeal must be filed not later than 30 days after the mailing date of the final decision of the Commissioner.