On December 22, 2017, the Federal Tax Cuts and Jobs Act of 2017 was signed into law. This Act includes the below new provisions:
529 Plan account owners can withdraw assets to pay for K-12 tuition (public, private or religious) up to $10,000 per year per beneficiary. Withdrawals from your account for this purpose will have no federal tax impact.
529 account owners can roll over 529 Plan assets into ABLE Plan accounts, subject to the annual contribution limit. It has not yet been determined whether such withdrawals may have State tax consequences. We encourage account owners to consult a qualified tax advisor about their personal situation.
Additionally, the IRS annual gift tax exclusion amount has been updated:
You can now gift $15,000 and $30,000 for single and married filing jointly (MFJ), respectively. Additionally, the 5-year upfront gifting amount has increased to $75,000 and $150,000 for single and MFJ filers, respectively.
If you have any questions about the Oklahoma Dream 529 Plan, please contact us at 1-877-529-9299 Monday through Friday from 7:30 a.m. - 5:00 p.m., Central Time.