News & Press Releases
Important News: Federal legislation 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 Connecticut taxpayers: We recommend that you consult your tax advisor to determine whether the earnings portion of any distribution from any 529 plan to pay for (i) tuition expenses at a public, private or religious elementary, middle, or high school, (ii) any amount rolled-over from a qualified tuition program to an ABLE account or (iii) any portion of the distribution deducted from state taxable income at the time of contribution, is subject to state income tax.