Definitions. In this regulation, the following terms have the meanings indicated. Terms Defined. “Account holder” means the person who establishes an investment account on behalf of a qualified designated beneficiary. “Contributor” means an individual who contributes to a Maryland Senator Edward J. Kasemeyer Prepaid College Trust Account under Education Article, §18-1903, Annotated Code of Maryland. Investment Account. “Investment account” means an account established by an account holder under Education Article, Title 18, Subtitle 19A, Annotated Code of Maryland, on behalf of a qualified designated beneficiary for the purpose of applying distributions toward qualified higher education expenses at eligible educational institutions. “Investment account” may include more than one investment option. “Investment option” means the investment portfolios available to account holders in the Maryland Senator Edward J. Kasemeyer College Investment Plan. “Qualified designated beneficiary” has the meaning stated in §529(e) of the Internal Revenue Code. “Qualified higher education expenses” has the meaning stated in §529(e) of the Internal Revenue Code. Subtraction Modification. Regardless of the number of investment options included in an investment account: All contributions by an account holder or contributor on behalf of one qualified designated beneficiary constitute one investment account; and The subtraction modification in Tax-General Article, §10-208(o), Annotated Code of Maryland, is limited to $2,500 per year per qualified designated beneficiary. For a married couple, if each spouse makes a contribution of at least $2,500 to an investment account for the same qualified designated beneficiary, and the couple files a joint Maryland income tax return, the subtraction modification for the couple on the joint return is $5,000. Addition Modification. An account holder is required to add to federal adjusted gross income in computing Maryland taxable income any distribution received from the Maryland Senator Edward J. Kasemeyer College Investment Plan in the taxable year that is not used on behalf of the qualified designated beneficiary for qualified higher education expenses. The addition required in §C(1) of this regulation shall be reduced by any amount included in the account holder's federal adjusted gross income as a result of the distribution. The cumulative amount of the addition required under this section for the taxable year and all prior taxable years may not exceed the cumulative amount allowed as a subtraction under §B of this regulation and Tax-General Article, §10-208(o), Annotated Code of Maryland, for the taxable year and all prior taxable years for contributions made by an account holder to an investment account under which the distribution is received.