Senate sends college savings plan bill to Governor
The Arizona State Senate today approved SB 1349, the Family College Savings Plan bill, sending it to the Governor for his signature.
Arizona's 529 plan allows parents and grandparents to save for educational expenses, in a tax-deferred manner. Right now, the State only allows these funds to be used for higher education expenses. SB 1349 opens these funds to elementary and secondary education expenses.
"Another important piece of this bill concerns technology," said Senator David Livingston, sponsor of SB 1349. "Students are facing many expenses now related to technology. My bill allows money from 529s to be used in the purchase of a computer, software or internet access."
Federal law now permits tax-free rollovers from 529 plans to Achieving a Better Life Experience (ABLE) accounts, to fund expenses for disabled individuals. With SB 1349, Arizona would conform to this as well.