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IN HB1255

Bill

Official Source

Status

Introduced

1/10/2019

Primary Sponsor

John Prescott

Click for details

Origin

House of Representatives

2019 Regular Session

AI Summary

  • Withdrawals from Indiana 529 education savings accounts that are rolled over into qualified retirement accounts (IRAs under IRC Section 408) can be excluded from Indiana adjusted gross income, provided the funds were never used for education expenses
  • Removes the Indiana Education Savings Authority's power to establish penalties for 529 account withdrawals not used exclusively for qualified higher education expenses
  • Maintains existing exceptions allowing penalty-free distributions for beneficiary death, disability, receipt of scholarships, or account rollovers
  • Effective date of July 1, 2019, with tax provisions applying to taxable years beginning after December 31, 2019
  • Amends IC 6-3-1-3.5 (adjusted gross income definition) and IC 21-9-7 (education savings authority powers)

Legislative Description

529 college savings distributions. Excludes from Indiana adjusted gross income amounts that were withdrawn by a taxpayer from an account owned by the taxpayer under an Indiana education savings program, that were never expended for purposes of an Indiana education savings program, and that were deposited into a qualified retirement account. Removes the power of the education savings authority to establish penalties for withdrawals of money from accounts that are not used exclusively for qualified higher education expenses.

Last Action

Representative Heine added as coauthor

1/15/2019

Committee Referrals

Ways and Means1/10/2019

Full Bill Text

No bill text available