Glossary

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Account Application
The account application is the form required to open a Minnesota College Savings Plan account along with payment. It incorporates by reference the Plan Participation Agreement.

Account Owner
The account owner is the owner of the Minnesota College Savings Plan account.

Accredited School
An accredited school is a school deemed as accredited by a nationally recognized accrediting agency and is legally authorized by the state where the school offers post-secondary education to provide an education program. An accredited school must admit as a regular student only individuals with a high school diploma or its recognized equivalent, or individuals beyond the age of compulsory school attendance in the state where the institution is located.

American Opportunity Tax Credit
The American Opportunity Tax Credit replaces the Hope Tax Credit through tax year 2012. The maximum credit is $2,500 for qualified tuition and related expenses for each eligible student. The American Opportunity Tax Credit reduces the amount of federal individual income taxes you may have to pay. A portion of the American Opportunity Tax Credit, 40% is refundable even if you do not have a tax liability. Income limitations and eligibility requirements apply. To learn more visit www.irs.gov

Beneficiary
The beneficiary is the person named by the account owner in the account application for whom the account funds are intended.

Contingent Owner
The contingent owner is the person designated by the account owner on the account application to succeed to ownership of the account upon the account owner's death.

Coverdell Education Savings Account (CESA or ESA)
A Coverdell ESA is a trust or custodial account created or organized in the United States only for the purpose of paying the qualified education expenses of the designated beneficiary of the account.

Custodial Account
A custodial account is an account created for the benefit of a minor, with an adult (agent, bank, trust company, or other organization) as the custodian in accordance with applicable state law. With custodial accounts, control of the account transfers to the beneficiary at the age of majority (18 or 21 depending on state).

Custodial Account Application
A custodial account application is used by a custodian to open a custodial account. Download the Custodial Account Application (PDF).

Custodian
A custodian is an agent, bank, trust company, or other organization which holds and safeguards an individual's account assets.

Education IRA
See Coverdell Education Savings Account (CESA or ESA).

Eligible Educational Institution
An eligible educational institution is an accredited, postsecondary educational institutions offering credit toward a bachelor’s degree, an associate’s degree, a graduate level or professional degree or another recognized postsecondary credential, including certain proprietary institutions and postsecondary technical and vocational schools and certain institutions in foreign countries, which are eligible to participate in a financial aid program under Title IV of the Higher Education Act of 1965.

Entity Account Application
An entity account application is the application used by trusts or estates, business entities, Internal Revenue Code Section 501(c)(3) organizations, or state/local governments. Download the Entity Account Application. (PDF)

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