Personal Income Tax Law: deferred compensation: exclusions: long-term qualified tuition program.
- Exempts direct transfers from 529 college savings plans to Roth IRAs from state income tax during 2025-2029.
- Aligns California tax law with federal changes to simplify tax preparation for state residents.
- Takes effect immediately to allow taxpayers to benefit from the new tax exemption starting in 2025.
Senator Niello's legislation aligns California tax law with federal provisions by exempting certain distributions from qualified tuition programs that are directly transferred to Roth IRAs. The bill modifies the Revenue and Taxation Code to exclude these transfers from gross income when made between January 1, 2025, and January 1, 2030.
The measure applies specifically to distributions from long-term qualified tuition programs, including California's Golden State Scholarshare Trust, when funds move directly between trustees to Roth IRAs. It maintains existing reporting requirements, mandating that institutions file documentation with both federal authorities and California's Franchise Tax Board.
To facilitate implementation, the legislation takes effect immediately as a tax levy under the California Constitution. The bill's findings indicate its purpose is conforming state law with federal changes to simplify tax preparation for California residents who utilize these transfers.
 Roger NielloR Senator | Bill Author |  Not Contacted | |
 Tony StricklandR Senator | Bill Author | Not Contacted | |
 Brian JonesR Senator | Bill Author | Not Contacted | |
 Steven ChoiR Senator | Bill Author | Not Contacted | |
 Phillip ChenR Assemblymember | Bill Author | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
AB-2524 | Personal Income Tax Law: deferred compensation: exclusions: long-term qualified tuition program. | February 2024 | Failed | |
AB-629 | Personal Income Tax Law: deferred compensation: exclusions: long-term qualified tuition program. | February 2023 | Failed |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
- Exempts direct transfers from 529 college savings plans to Roth IRAs from state income tax during 2025-2029.
- Aligns California tax law with federal changes to simplify tax preparation for state residents.
- Takes effect immediately to allow taxpayers to benefit from the new tax exemption starting in 2025.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senator Niello's legislation aligns California tax law with federal provisions by exempting certain distributions from qualified tuition programs that are directly transferred to Roth IRAs. The bill modifies the Revenue and Taxation Code to exclude these transfers from gross income when made between January 1, 2025, and January 1, 2030.
The measure applies specifically to distributions from long-term qualified tuition programs, including California's Golden State Scholarshare Trust, when funds move directly between trustees to Roth IRAs. It maintains existing reporting requirements, mandating that institutions file documentation with both federal authorities and California's Franchise Tax Board.
To facilitate implementation, the legislation takes effect immediately as a tax levy under the California Constitution. The bill's findings indicate its purpose is conforming state law with federal changes to simplify tax preparation for California residents who utilize these transfers.
Roger NielloR Senator | Bill Author | Not Contacted | |
Tony StricklandR Senator | Bill Author | Not Contacted | |
Brian JonesR Senator | Bill Author | Not Contacted | |
Steven ChoiR Senator | Bill Author | Not Contacted | |
Phillip ChenR Assemblymember | Bill Author | Not Contacted |
| Bill Number | Title | Introduced Date | Status | Link to Bill |
|---|---|---|---|---|
AB-2524 | Personal Income Tax Law: deferred compensation: exclusions: long-term qualified tuition program. | February 2024 | Failed | |
AB-629 | Personal Income Tax Law: deferred compensation: exclusions: long-term qualified tuition program. | February 2023 | Failed |