Important Updates to Your College Savings Plan

On December 18, 2015 President Obama signed a bill into law that included several enhancements to 529 College Savings Plans. These enhancements benefit your investment in your child's college education.

Computer Technology and Equipment are now allowed as a Qualified Higher Education Expense

The purchase of a computer and any related equipment, computer software, internet access and related services to be used primarily by your child for educational purposes while enrolled at an eligible educational institution is now considered a qualified higher education expense.

This is effective for taxable years beginning after December 31, 2014.

Special Rule for Recontribution of Refunded Amounts

A refund of a qualified higher education expense received by a beneficiary from an eligible educational institution can be recontributed to your Education Plan 529 College Savings Plan and will not be treated as a non-qualified withdrawal if the recontribution is made no more than 60 days after the date of the refund and the recontributed amount does not exceed the amount of the refund.

A special rule provides that refunds received after December 31, 2014 and before December 18, 2015, may be recontributed no later than 60 days after December 18, 2015.

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