(3) Requirements (A) In general A program shall not be treated as a Lifelong Learning and Training Account program unless it provides— (i) that contributions may only be made in cash, (ii) separate accounting for each designated beneficiary, (iii) that no interest in the program or any portion thereof may be used as security for a loan, (iv) that no contributions may be made on behalf of a designated beneficiary— (I) in excess of $2,000 during any calendar year, (II) if the total amount in the account of such beneficiary is in excess of $15,000, or (III) during any calendar year which begins after such beneficiary attains 57 years of age, (v) that any distribution shall be made in accordance with the requirements under subparagraphs (B) and (C), and (vi) that required distributions shall be made in accordance with paragraph (6). (B) Method of distribution (i) In general For purposes of any distribution from the account of a designated beneficiary under a Lifelong Learning and Training Account program— (I) the applicable amount of such distribution shall be drawn from amounts transferred to the account of the designated beneficiary pursuant to paragraph (4) and any earnings thereon, and (II) after application of subclause (I), the remainder of such distribution shall be drawn from amounts contributed by the designated beneficiary or their employer and any earnings thereon. (ii) Applicable amount For purposes of clause (i)(I), the applicable amount shall be an amount equal to the lesser of— (I) 50 percent of the amount of the distribution, or (II) the total amount of any available funds in the account of the designated beneficiary which were transferred pursuant to paragraph (4) and any earnings thereon. (iii) Other methods The Secretary may amend, alter, or supplement the distribution requirements under this subparagraph in such manner as the Secretary deems appropriate. (C) Reporting For purposes of any distribution from the account of a designated beneficiary under a Lifelong Learning and Training Account