HB5310 Summary

• Creates a deduction for Illinois income tax purposes for amounts included in federal adjusted gross income attributable to conversions from qualified tuition programs (Section 529 plans) to Roth IRAs, effective for tax years beginning on or after January 1, 2025.

• Adds new subparagraph (LL) to Section 203(a)(2) of the Illinois Income Tax Act to allow individuals to deduct such 529-to-Roth IRA conversion amounts from their Illinois tax base income.

• Provides that the deduction is exempt from the limitations in Section 250 of the Illinois Income Tax Act.

• Applies only to conversions occurring in taxable years beginning on or after January 1, 2025, and becomes effective immediately upon enactment.