(1) Qualified withdrawals from an account are:

(a) a withdrawal from an account to pay the qualified disability expenses of an account owner;

(b) a withdrawal made as the result of the death of the account owner; or

(c) a rollover distribution or a change of designated beneficiary and account owner.

(2) A qualified withdrawal may be made by the account owner, by an agent of the account owner who has a power of attorney for the beneficiary, or by the account owner's legal guardian for qualified disability expenses.

(3) Nonqualified withdrawals are any withdrawals from an account other than qualified withdrawals and are subject to a recapture tax, as allowed under section 529A(c)(3) of the Internal Revenue Code and as implemented by the Montana Department of Revenue.