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Important News: Federal legislation signed by President Trump includes changes to Section 529 college savings plans
The federal tax reform bill, which was signed into law on December 22, 2017, includes provisions related to Section 529 college savings plans. Specifically, language in the bill allows distributions used for up to $10,000 of tuition expenses at a public, private or religious elementary, middle, or high school per student per year from all Section 529 college savings plans and rollovers out of 529 college savings plans into Section 529A ABLE accounts to occur free of federal tax.
Note for California taxpayers: The California Franchise Tax Board (FTB), in its role as the State's tax authority, is in the process of reviewing these new federal amendments and their impact on California taxpayers taking distributions from 529 college savings plans. The FTB will issue its determination on the California state tax treatment of such expenses in mid-April 2018. Please be sure to visit our website for updates. In the meantime, we encourage you to consult a qualified tax advisor for further guidance for your particular situation.