OH HB125

Replaces a fixed $4,000 annual deduction limit for 529 plan contributions with an adjustable "annual contribution limit" of $8,000 for joint filers and $4,000 for other taxpayers beginning in 2023.

Beginning in August 2024, the tax commissioner shall annually adjust contribution limits by multiplying them by the percentage increase in the gross domestic product deflator, rounding to the nearest $50, with adjustments applied to subsequent tax years.

Allows excess contributions exceeding the annual limit to be carried forward and deducted in future years until fully deducted.

Applies the same annual contribution limit framework to ABLE savings account contributions, replacing previous statutory language that referenced the 529 plan limit.

Removes language distinguishing between joint returns and separate returns, establishing uniform contribution limits per beneficiary regardless of filing status.