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Important News: Federal Tax Cuts and Jobs Act of 2017 includes changes to Section 529 college savings plans

Apr 03, 2018

Effective January 1, 2018, distributions for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school are federal income tax free up to $10,000 per taxable year per Beneficiary from all 529 Plans.

The Minnesota Legislature is in its 2018 legislative session and has not yet determined whether and how the Minnesota statutes that govern this Plan may be modified to address certain provisions within the Federal Tax Cuts and Jobs Act. These provisions include the treatment of elementary and secondary education tuition costs (described above) and rollover amounts under the Plan to a Section 529A Qualified ABLE Program. Subsequent to the conclusion of the 2018 legislative session, the Plan will inform you if any such modifications were made. You should consult a tax advisor regarding your individual situation, including whether a withdrawal for elementary and secondary school tuition or a rollover to a Qualified ABLE Program would have any tax recapture consequences for a deduction or tax credit previously claimed, or result in the forfeiture of all or a portion of any previously awarded Matching Grants.


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