Arizona Governor Doug Ducey (R) signed SB 1349 into law on May 22, 2019. This bill amends the Arizona state statutes relating to the Family College Savings Program, aligning them with the federal changes to 529 plans that resulted from the Tax Cuts and Jobs Act of 2017.
Amongst a few clerical changes, this bill amends the definition of qualified higher education expenses to include the following.
- The purchase of a computer, peripheral equipment, or computer software or Internet access and related services—as long as the computer, equipment, and software or services are used primarily by the beneficiary during the years that the beneficiary is enrolled at an eligible educational institution. These items must also meet the definition of qualified higher education expenses in Internal Revenue Code Section (IRC Sec.) 529.
- Tuition to enroll in or attend an elementary or secondary public, private, or religious school pursuant to IRC Sec. 529.
The definition of a qualified withdrawal is also amended to include the tuition of less than $10,000 for the designated beneficiary to enroll in or attend an elementary or secondary public, private, or religious school pursuant to IRC Sec. 529, provided the withdrawal is made in accordance with the statutes.
Additionally, the bill provides that through December 31, 2025, upon direction of an account owner, up to $15,000 of an account may be rolled over to an Achieving a Better Life Experience Act (ABLE) account, established pursuant to 26 U.S. Code Section 529A.