How does California treat 529 and ABLE account changes?
California doesn't conform to most of the treatment of 529 and ABLE accounts from the CARES and SECURE Acts.
Amounts used for elementary or secondary education are considered invalid distributions and are considered taxable income for California purposes. We'll include these amounts automatically from your federal return.
Amounts used to cover costs for education loans are considered invalid distributions and are considered taxable income for California purposes. We'll include these amounts automatically from your federal return.
Amounts rolled from a 529 account to an ABLE or ROTH account are subject to a penalty for California purposes.
Amounts used for elementary or secondary education are considered invalid distributions and are considered taxable income for California purposes. We'll include these amounts automatically from your federal return.
Amounts used to cover costs for education loans are considered invalid distributions and are considered taxable income for California purposes. We'll include these amounts automatically from your federal return.
Amounts rolled from a 529 account to an ABLE or ROTH account are subject to a penalty for California purposes.
