Federal tax reform update
Recent changes to federal law are expanding the 529 savings program, allowing Missouri families to better utilize this important program. We are working on updating our website to reflect the new laws relating to 529 plans. These changes include the following new provisions related specifically to 529 plan accounts, beginning with the 2018 tax year:
* Missouri taxpayers can use MOST 529 assets to pay for K-12 tuition up to $10,000 per year per student without state tax consequences. State tax treatment of K-12 withdrawals is determined by the state(s) where the taxpayer files state income tax. If you are not a Missouri taxpayer, please consult with a tax advisor.
* The changes to the federal law allow rollovers from 529 plans to ABLE plans without federal tax consequences. Missouri statute does not currently allow for rollovers of MOST 529 assets to ABLE accounts without Missouri state tax consequences. Legislation that would allow this has been filed in the Missouri General Assembly, but would first have to be passed by the General Assembly and signed into law by the Governor before becoming effective. We suggest MOST 529 account owners who are residents of other states consult with a tax advisor about their state laws.
MOST will continue to keep you updated on the implementation of these changes. We encourage you to consult a qualified tax advisor about your personal situation.
