IN HB1282

Amends Indiana's 529 college savings plan tax credit provisions to conform with Section 529 of the Internal Revenue Code, effective retroactively to January 1, 2026

Expands the definition of "qualified K-12 education expenses" beyond tuition to include all expenses listed in Section 529 of the Internal Revenue Code for elementary and secondary schools located in Indiana

Adds special rollovers from Indiana529 plans to Roth IRAs as a qualified withdrawal category for taxable years beginning after December 31, 2025

Redefines "nonqualified withdrawal" to specifically enumerate categories including K-12 expenses outside Indiana, rollovers to out-of-state 529 or ABLE programs, and qualified education loan repayments under Section 529(c)(9)

Updates qualified withdrawal exemptions to reference Section 530(d)(4)(B)(i)-(iv) of the Internal Revenue Code for death, disability, scholarship, and certain other distribution scenarios