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IRS to Issue Regulations on Recent Changes to Internal Revenue Code Section 529 Education Saving Plans

 

On July 30, 2018, the U.S. Treasury Department and the IRS announced their intent to issue regulations on three recent tax changes that affect Internal Revenue Code Section 529 Education Savings Plans.

When issued, the regulations will provide guidance regarding (1) the special rules for contributions of refunded qualified higher education expenses to a qualified tuition program, (2) new rules permitting a rollover from a qualified tuition program to an ABLE account, and (3) new rules treating certain elementary or secondary school expenses as qualified higher education expenses.

Notice 2018-58, issued on July 30, 2018, outlines the proposed scope of the new regulations.  Until the proposed regulations are released, taxpayers, beneficiaries and administrators of Section 529 and ABLE programs may rely on the rules described in Notice 2018-58.

For more information about Notice 2018-58, see https://www.irs.gov/pub/irs-drop/n-18-58.pdf and https://www.irs.gov/newsroom/irs-offers-guidance-on-recent-529-education-savings-plan-changes.

MBK provides tax advice and guidance to individuals and non-profit, tax-exempt and charitable organizations seeking guidance on complying with federal, state and local tax rules and regulations.

Myers, Brier and Kelly LLP.

Lisa Bothwell joined Myers, Brier & Kelly, LLP in 2015.  Her practice is concentrated in estate planning, estate and trust administration, and individual and corporate business and tax matters. Lisa works extensively with individuals and families to develop and implement sophisticated estate plans customized for their unique needs and wishes.  Her practice includes planning for […]

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