HF 2160: Excluding from the individual income tax certain direct trustee-to-trustee transfers from educational savings plan trust accounts to Roth individual retirement accounts, and including retroactive applicability provisions

What it does

Under the federal Consolidated Appropriations Act, 2023, Pub. L. No. 117-328, transfers from a 529 educational account to a Roth individual retirement account beneficiary are exempt from federal taxation, subject to Roth contribution limits and the aggregate lifetime limit of $35,000, and if the 529 educational account has existed for at least 15 years. This bill also makes such a transfer exempt from state individual income taxation. The bill applies retroactively to tax years beginning on or after January 1, 2024.

In plain words

1. January 25, 2024Filed in the House and sent to the State Government committee