Tax law changes

SECURE Act

The SECURE Act was recently approved by Congress and signed into law by President Trump. Included in this Act is the expanded use of 529 accounts to be used to pay for costs associated with an apprenticeship and to be used to repay student loans (up to $10,000 per beneficiary).

These changes are not immediately effective for the MOST program and they are under review by the MOST board at this time. We will keep you updated as they complete their review.

Using Your 529 to Pay for K-12 Expenses & ABLE Rollovers

Recent changes to federal law are expanding the 529 savings program, allowing Missouri families to better utilize this important program. 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 may allow for rollovers of MOST 529 assets to ABLE accounts without Missouri state tax consequences. 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.