Common use of Federal Qualified Rollover Distribution Clause in Contracts

Federal Qualified Rollover Distribution. The Account Owner may direct a transfer of money from the Account to an account in another 529 qualified tuition program for the same or another beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into an account in another 529 qualified tuition program for the same or another beneficiary. Such a rollover will be treated as a Federal Qualified Rollover Distribution provided that if the beneficiary remains the same, it has been more than twelve (12) months since any previous rollover for that beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary is a Member of the Family of the former beneficiary. In addition, prior to January 1, 2026, a transfer of money from the Account to an ABLE account for the Beneficiary or a Member of the Family of the Beneficiary, is a Federal Qualified Rollover Distribution provided that the transfer when added to all other contributions made to the ABLE account in the taxable year, does not exceed the limitation in Section 529A(b)(2)(B)(i) of the Code. That Section of the Code limits aggregate contributions to an ABLE account during a tax year to the amount of the gift tax annual exclusion (for 2021 the annual exclusion is $15,000 and will increase to $16,000 in 2022). When Is the Contributions Portion of a Rollover Subject to Income Tax? Illinois law provides for the recapture of Illinois state tax benefits in the event of an Illinois Nonqualified Withdrawal from the Account. In the event of an Illinois Nonqualified Withdrawal, the adjusted gross income of an Illinois taxpayer who took an Illinois income tax deduction for a Contribution to the Account will be increased by an amount equal to the Contributions Portion of such Illinois Nonqualified Withdrawal that was previously deducted from federal adjusted gross income on the taxpayer’s Illinois tax return. Note that if the Illinois tax rate at the time of the Illinois Nonqualified Withdrawal exceeds the tax rate at the time of the original Contribution, the additional tax may exceed the amount of tax saved by the deduction. A rollover that is not a Federal Qualified Rollover Distribution will be an Illinois Nonqualified Withdrawal. Certain rollovers that are Federal Qualified Rollover Distributions, however, may be Illinois Nonqualified Withdrawals, including rollovers to out-of-state 529 programs and rollovers to out-of-state ABLE accounts. May I Rollover an Account in an Out-of-State 529 Plan to the Program? You may open an Account or contribute to an existing Account in the Program by rolling over or transferring funds from another 529 qualified tuition program. Such a rollover transaction will be treated as a Federal Qualified Rollover Distribution provided it has been more than twelve (12) months since any previous rollover for that Beneficiary or if you change the Beneficiary of the Account to a Member of the Family of the former Beneficiary. The program from which you are transferring funds may impose fees or other restrictions on such a transfer, and there may be state income tax consequences of such a transfer, so you should investigate this option thoroughly before requesting a transfer. When you transfer funds from another 529 qualified tuition program, the IRS requires the Program Manager to assume that the transfer consists solely of earnings until it receives a statement from the program from which the funds were distributed identifying the Contributions and Earnings Portions of the distribution. The Illinois Administrative Code provides that in the case of a rollover from a non-Illinois qualified tuition program, the amount of the rollover that constituted investment in the prior qualified tuition program for federal income tax purposes (but not the Earnings Portion of the rollover) is eligible for the deduction for Illinois individual income tax purposes, subject to the deduction limits discussed above. You should consult your tax or legal advisor about the availability of such deduction. May I Rollover an Account to an Out-of-State 529 Plan? The Account Owner may direct a transfer of money from an Account to an account in another 529 qualified tuition program for the same or another beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into an account in another 529 qualified tuition program for the same or another beneficiary. If the beneficiary stays the same, the transfer will be treated as a Federal Qualified Rollover Distribution as long as the transfer does not occur within twelve (12) months from the date of a previous rollover to another 529 qualified tuition program for the beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary is a Member of the Family of the former beneficiary. A rollover to an out-of-state 529 qualified tuition program will be an Illinois Nonqualified Withdrawal. Illinois law provides for the recapture of Illinois state tax benefits in the event of an Illinois Nonqualified Withdrawal by increasing the adjusted gross income of an Illinois taxpayer who previously took an Illinois state income tax deduction for Contributions made to the Program. Before rolling over an Account to an out-of-state 529 qualified tuition program, you should consult with your tax or legal advisor. Are There Tax Consequences to Changing the Account Owner? A change of Account ownership may also have gift and/or GST tax consequences. This area of the law is uncertain at this time. Accordingly, Account Owners should consult their own tax or legal advisor for guidance when considering a change of Account ownership. What Are the Tax Benefits for Employer Matching Contributions? For taxable years ending on or before December 31, 2024, employers that match employees’ contributions to the Program, College Illinois! or the Bright Start Direct-Sold College Savings Program, are eligible for an Illinois state tax credit. Employers receive a tax credit equal to 25% of the matching Contributions the employer makes to its employee’s Account in the Program, College Illinois!, or the Bright Start Direct-Sold College Savings Program, up to a maximum annual tax credit of $500 per contributing employee. Employers should consult a tax advisor regarding the availability and ramifications of this credit. May I Recontribute a Refunded Amount to an Account? In the case of a Beneficiary who receives a refund of any Federal Qualified Higher Education Expenses from an Institution of Higher Education, the amount refunded will not be subject to federal income tax to the extent it is recontributed to a 529 qualified tuition program account for the same Beneficiary, but only to the extent such recontribution is made no later than sixty (60) days after the date of such refund and does not exceed the refunded amount. It is the responsibility of the Account Owner to keep all records of the refunds and subsequent recontributions. Consult a tax or legal advisor to determine your eligibility for this treatment.

Federal Qualified Rollover Distribution. The Account Owner may direct a transfer of money from the Account to an account in another 529 qualified tuition program for the same or another beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into an account in another 529 qualified tuition program for the same or another beneficiary. Such a rollover will be treated as a Federal Qualified Rollover Distribution provided that if the beneficiary remains the same, it has been more than twelve (12) months since any previous rollover for that beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary is a Member of the Family of the former beneficiary. In addition, prior to January 1, 2026, a transfer of money from the Account to an ABLE account for the Beneficiary or a Member of the Family of the Beneficiary, is a Federal Qualified Rollover Distribution provided that the transfer when added to all other contributions made to the ABLE account in the taxable year, does not exceed the limitation in Section 529A(b)(2)(B)(i) of the Code. That Section of the Code limits aggregate contributions to an ABLE account during a tax year to the amount of the gift tax annual exclusion (for 2021 the annual exclusion is currently $15,000 and will increase to $16,000 in 202215,000). When Is the Contributions Portion of a Rollover Subject to Income Tax? Illinois law provides for the recapture of Illinois state tax benefits in the event of an Illinois Nonqualified Withdrawal from the Account. In the event of an Illinois Nonqualified Withdrawal, the adjusted gross income of an Illinois taxpayer who took an Illinois income tax deduction for a Contribution to the Account will be increased by an amount equal to the Contributions Portion of such Illinois Nonqualified Withdrawal that was previously deducted from federal adjusted gross income on the taxpayer’s Illinois tax return. Note that if the Illinois tax rate at the time of the Illinois Nonqualified Withdrawal exceeds the tax rate at the time of the original Contribution, the additional tax may exceed the amount of tax saved by the deduction. A rollover that is not a Federal Qualified Rollover Distribution will be an Illinois Nonqualified Withdrawal. Certain rollovers that are Federal Qualified Rollover Distributions, however, may be Illinois Nonqualified Withdrawals, including rollovers to out-of-state 529 programs and rollovers to out-of-state ABLE accounts. May I Rollover an Account in an Out-of-State 529 Plan to the Program? You may open an Account or contribute to an existing Account in the Program by rolling over or transferring funds from another 529 qualified tuition program. Such a rollover transaction will be treated as a Federal Qualified Rollover Distribution provided it has been more than twelve (12) months since any previous rollover for that Beneficiary or if you change the Beneficiary of the Account to a Member of the Family of the former Beneficiary. The program from which you are transferring funds may impose fees or other restrictions on such a transfer, and there may be state income tax consequences of such a transfer, so you should investigate this option thoroughly before requesting a transfer. When you transfer funds from another 529 qualified tuition program, the IRS requires the Program Manager to assume that the transfer consists solely of earnings until it receives a statement from the program from which the funds were distributed identifying the Contributions contributions and Earnings Portions earnings portions of the distribution. The Illinois Administrative Code provides that in the case of a rollover from a non-Illinois qualified tuition program, the amount of the rollover that constituted investment in the prior qualified tuition program for federal income tax purposes (but not the Earnings Portion earnings portion of the rollover) is eligible for the deduction for Illinois individual income tax purposes, subject to the deduction limits discussed above. You should consult your tax or legal advisor about the availability of such deduction. May I Rollover an Account to an Out-of-State 529 Plan? The Account Owner may direct a transfer of money from an Account to an account in another 529 qualified tuition program for the same or another beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into an account in another 529 qualified tuition program for the same or another beneficiary. If the beneficiary stays the same, the transfer will be treated as a Federal Qualified Rollover Distribution as long as the transfer does not occur within twelve (12) months from the date of a previous rollover to another 529 qualified tuition program for the beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary is a Member of the Family of the former beneficiary. A rollover to an out-of-state 529 qualified tuition program will be an Illinois Nonqualified Withdrawal. Illinois law provides for the recapture of Illinois state tax benefits in the event of an Illinois Nonqualified Withdrawal by increasing the adjusted gross income of an Illinois taxpayer who previously took an Illinois state income tax deduction for Contributions made to the Program. Before rolling over an Account to an out-of-state 529 qualified tuition program, you should consult with your tax or legal advisor. Are There Tax Consequences to Changing the Account Owner? A change of Account ownership may also have gift and/or GST tax consequences. This area of the law is uncertain at this time. Accordingly, Account Owners should consult their own tax or legal advisor for guidance when considering a change of Account ownership. What Are the Tax Benefits for Employer Matching Contributions? For taxable years ending on or before December 3130, 20242020, employers that match employees’ contributions to the Program, College Illinois! or the Bright Start Direct-Sold College Savings Program, are eligible for an Illinois state tax credit. Employers receive a tax credit equal to 25% of the matching Contributions the employer makes to its employee’s Account in the Program, College Illinois!, or the Bright Start Direct-Sold College Savings Program, up to a maximum annual tax credit of $500 per contributing employee. Employers should consult a tax advisor regarding the availability and ramifications of this credit. May I Recontribute a Refunded Amount to an Account? In the case of a Beneficiary who receives a refund of any Federal Qualified Higher Education Expenses from an Institution of Higher Education, the amount refunded will not be subject to federal income tax to the extent it is recontributed to a 529 qualified tuition program account for the same Beneficiary, but only to the extent such recontribution is made no later than sixty (60) days after the date of such refund and does not exceed the refunded amount. It is the responsibility of the Account Owner to keep all records of the refunds and subsequent recontributions. Consult a tax or legal advisor to determine your eligibility for this treatment.

Federal Qualified Rollover Distribution. The Account Owner may direct Federal Qualified Rollover Distribution means a distribution or transfer of money from the Account to an account in another that is deposited within 60 days of the distribution or transfer to: • An out-of-state 529 qualified tuition program for the same or another beneficiarybenefit of the Beneficiary, provided the transfer does not occur within 12 months of the date of a previous transfer for the benefit of the Beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into If an account in another owner has both an Age-Based Investment Option account and a Static Investment Option account, a rollover to both accounts will be treated as a single rollover for purposes of the 12-month rule, if the rollovers are made prior to closing on the same trading day; • An out-of-state 529 qualified tuition program for the same or another beneficiary. Such a rollover will be treated as a Federal Qualified Rollover Distribution provided that if the beneficiary remains the same, it has been more than twelve (12) months since any previous rollover for that beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary benefit of an individual who is a Member of the Family of the former beneficiary. In addition, prior to January 1, 2026, a transfer Beneficiary; or • An ABLE Account of money from the Account to an ABLE account for the Beneficiary or a Member of the Family of the Beneficiary, subject to the contribution limits for ABLE Accounts (effective for periods prior to January 1, 2026). Transfers between the Plan and another 529 qualified tuition program in the Trust for the same Beneficiary are treated as Investment Option changes, rather than rollovers. Transfers between the Plan and another 529 qualified tuition program in the Trust for a different beneficiary are treated as a change of beneficiaries, rather than rollovers. If you roll over money in your Plan account to any 529 qualified tuition program outside the Trust, the earnings portion of the rollover will be subject to Nebraska state income tax. In addition, the rollover will be subject to recapture of any Nebraska state income tax deduction previously claimed by the account owner. You may transfer money in your Plan account to an Enable Savings Plan account (or any ABLE program issued by the State of Nebraska) without adverse tax consequences, provided the transfer is a Federal Qualified Rollover Distribution provided that Distribution. However, if you roll over money in your Plan account to any ABLE program not issued by the transfer when added to all other contributions made to State of Nebraska, the ABLE account in the taxable year, does not exceed the limitation in Section 529A(b)(2)(B)(i) earnings portion of the Coderollover will be subject to Nebraska state income tax. That Section of In addition, the Code limits aggregate contributions rollover will be subject to an ABLE account during a tax year to the amount of the gift tax annual exclusion (for 2021 the annual exclusion is $15,000 and will increase to $16,000 in 2022). When Is the Contributions Portion of a Rollover Subject to Income Tax? Illinois law provides for the recapture of Illinois any Nebraska state tax benefits in the event of an Illinois Nonqualified Withdrawal from the Account. In the event of an Illinois Nonqualified Withdrawal, the adjusted gross income of an Illinois taxpayer who took an Illinois income tax deduction for a Contribution to the Account will be increased by an amount equal to the Contributions Portion of such Illinois Nonqualified Withdrawal that was previously deducted from federal adjusted gross income on the taxpayer’s Illinois tax return. Note that if the Illinois tax rate at the time of the Illinois Nonqualified Withdrawal exceeds the tax rate at the time of the original Contribution, the additional tax may exceed the amount of tax saved claimed by the deductionaccount owner. A rollover that is not Not all ABLE program sponsors may accept rollovers from a Federal Qualified Rollover Distribution will be an Illinois Nonqualified Withdrawal. Certain rollovers that are Federal Qualified Rollover Distributions, however, may be Illinois Nonqualified Withdrawals, including rollovers to out-of-state 529 programs and rollovers to out-of-state ABLE accounts. May I Rollover an Account in an Out-of-State 529 Plan to the Program? You may open an Account or contribute to an existing Account in the Program by rolling over or transferring funds from another 529 qualified tuition program. Such a rollover transaction will be treated as a Federal Qualified Rollover Distribution provided it has been more than twelve (12) months since any previous rollover for that Beneficiary or if you change the Beneficiary of the Account to a Member of the Family of the former Beneficiary. The program from which you are transferring funds may impose fees or other restrictions on such a transfer, and there may be state income tax consequences of such a transfer, so ; you should investigate this option thoroughly before requesting a transfer. When you transfer funds from another 529 qualified tuition program, the IRS requires the Program Manager to assume that the transfer consists solely of earnings until it receives a statement from the program from which the funds were distributed identifying the Contributions and Earnings Portions of the distribution. The Illinois Administrative Code provides that in the case of a rollover from a non-Illinois qualified tuition program, the amount of the rollover that constituted investment in the prior qualified tuition program for federal income tax purposes (but not the Earnings Portion of the rollover) is eligible for the deduction for Illinois individual income tax purposes, subject to the deduction limits discussed above. You should consult contact your tax or legal advisor about the availability of such deduction. May I Rollover an Account to an Out-of-State 529 Plan? The Account Owner may direct a transfer of money from an Account to an account in another 529 qualified tuition program for the same or another beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into an account in another 529 qualified tuition program for the same or another beneficiary. If the beneficiary stays the same, the transfer will be treated as a Federal Qualified Rollover Distribution as long as the transfer does not occur within twelve (12) months from the date of a previous rollover to another 529 qualified tuition program for the beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary is a Member of the Family of the former beneficiary. A rollover to an out-of-state 529 qualified tuition program will be an Illinois Nonqualified Withdrawal. Illinois law provides for the recapture of Illinois state tax benefits in the event of an Illinois Nonqualified Withdrawal by increasing the adjusted gross income of an Illinois taxpayer who previously took an Illinois state income tax deduction for Contributions made to the Program. Before rolling over an Account to an out-of-state 529 qualified tuition program, you should consult with your tax or legal advisor. Are There Tax Consequences to Changing the Account Owner? A change of Account ownership may also have gift and/or GST tax consequences. This area of the law is uncertain at this time. Accordingly, Account Owners should consult their own tax or legal advisor for guidance when considering a change of Account ownership. What Are the Tax Benefits for Employer Matching Contributions? For taxable years ending on or before December 31, 2024, employers that match employees’ contributions to the Program, College Illinois! or the Bright Start Direct-Sold College Savings Program, are eligible for an Illinois state tax credit. Employers receive a tax credit equal to 25% of the matching Contributions the employer makes to its employee’s Account in the Program, College Illinois!, or the Bright Start Direct-Sold College Savings Program, up to a maximum annual tax credit of $500 per contributing employee. Employers should consult a tax advisor regarding the availability and ramifications of this credit. May I Recontribute a Refunded Amount to an Account? In the case of a Beneficiary who receives a refund of any Federal Qualified Higher Education Expenses from an Institution of Higher Education, the amount refunded will not be subject to federal income tax to the extent it is recontributed to a 529 qualified tuition program account for the same Beneficiary, but only to the extent such recontribution is made no later than sixty (60) days after the date of such refund and does not exceed the refunded amount. It is the responsibility of the Account Owner to keep all records of the refunds and subsequent recontributions. Consult a tax or legal advisor to determine your eligibility for this treatmentmore information.

Federal Qualified Rollover Distribution. The Account Owner may direct Federal Qualified Rollover Distribution means a distribution or transfer of money from the Account to an account in another that is deposited within 60 days of the distribution or transfer to: • An out-of-state 529 qualified tuition program for the same or another beneficiary. Alternativelybenefit of the Beneficiary, provided the Account Owner may make transfer does not occur within 12 months of the date of a withdrawal from previous transfer for the Account and rebenefit of the Beneficiary; • An out-deposit the withdrawn balance within sixty (60) days into an account in another of-state 529 qualified tuition program for the same or another beneficiary. Such a rollover will be treated as a Federal Qualified Rollover Distribution provided that if the beneficiary remains the same, it has been more than twelve (12) months since any previous rollover for that beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary benefit of an individual who is a Member of the Family of the former beneficiary. In addition, prior to January 1, 2026, a transfer Beneficiary; or • An ABLE Account of money from the Account to an ABLE account for the Beneficiary or a Member of the Family of the Beneficiary, subject to the contribution limits for ABLE Accounts (effective for periods prior to January 1, 2026). Until August 23, 2021, if an account owner has both an Age-Based Investment Option account and a Static/Individual Fund Investment Option account or if an account owner has multiple Age-Based Investment Option accounts, a rollover to these accounts will be treated as a single rollover for purposes of the 12-month rule, if the rollovers are made prior to closing on the same trading day. Transfers between the Plan and another 529 qualified tuition program in the Trust for the same Beneficiary are treated as Investment Option changes, rather than rollovers. Transfers between the Plan and another 529 qualified tuition program in the Trust for a different beneficiary are treated as a change of beneficiaries, rather than rollovers. If you roll over money in your Plan account to any 529 qualified tuition program outside the Trust, the earnings portion of the rollover will be subject to Nebraska state income tax. In addition, the rollover will be subject to recapture of any Nebraska state income tax deduction previously claimed by the account owner. You may transfer money in your Plan account to an Enable Savings Plan account (or any ABLE program issued by the State of Nebraska) without adverse tax consequences, provided the transfer is a Federal Qualified Rollover Distribution provided that Distribution. However, if you roll over money in your Plan account to any ABLE program not issued by the transfer when added to all other contributions made to State of Nebraska, the ABLE account in the taxable year, does not exceed the limitation in Section 529A(b)(2)(B)(i) earnings portion of the Coderollover will be subject to Nebraska state income tax. That Section of In addition, the Code limits aggregate contributions rollover will be subject to an ABLE account during a tax year to the amount of the gift tax annual exclusion (for 2021 the annual exclusion is $15,000 and will increase to $16,000 in 2022). When Is the Contributions Portion of a Rollover Subject to Income Tax? Illinois law provides for the recapture of Illinois any Nebraska state tax benefits in the event of an Illinois Nonqualified Withdrawal from the Account. In the event of an Illinois Nonqualified Withdrawal, the adjusted gross income of an Illinois taxpayer who took an Illinois income tax deduction for a Contribution to the Account will be increased by an amount equal to the Contributions Portion of such Illinois Nonqualified Withdrawal that was previously deducted from federal adjusted gross income on the taxpayer’s Illinois tax return. Note that if the Illinois tax rate at the time of the Illinois Nonqualified Withdrawal exceeds the tax rate at the time of the original Contribution, the additional tax may exceed the amount of tax saved claimed by the deductionaccount owner. A rollover that is not Not all ABLE program sponsors may accept rollovers from a Federal Qualified Rollover Distribution will be an Illinois Nonqualified Withdrawal. Certain rollovers that are Federal Qualified Rollover Distributions, however, may be Illinois Nonqualified Withdrawals, including rollovers to out-of-state 529 programs and rollovers to out-of-state ABLE accounts. May I Rollover an Account in an Out-of-State 529 Plan to the Program? You may open an Account or contribute to an existing Account in the Program by rolling over or transferring funds from another 529 qualified tuition program. Such a rollover transaction will be treated as a Federal Qualified Rollover Distribution provided it has been more than twelve (12) months since any previous rollover for that Beneficiary or if you change the Beneficiary of the Account to a Member of the Family of the former Beneficiary. The program from which you are transferring funds may impose fees or other restrictions on such a transfer, and there may be state income tax consequences of such a transfer, so ; you should investigate this option thoroughly before requesting a transfer. When you transfer funds from another 529 qualified tuition program, the IRS requires the Program Manager to assume that the transfer consists solely of earnings until it receives a statement from the program from which the funds were distributed identifying the Contributions and Earnings Portions of the distribution. The Illinois Administrative Code provides that in the case of a rollover from a non-Illinois qualified tuition program, the amount of the rollover that constituted investment in the prior qualified tuition program for federal income tax purposes (but not the Earnings Portion of the rollover) is eligible for the deduction for Illinois individual income tax purposes, subject to the deduction limits discussed above. You should consult contact your tax or legal advisor about the availability of such deduction. May I Rollover an Account to an Out-of-State 529 Plan? The Account Owner may direct a transfer of money from an Account to an account in another 529 qualified tuition program for the same or another beneficiary. Alternatively, the Account Owner may make a withdrawal from the Account and re-deposit the withdrawn balance within sixty (60) days into an account in another 529 qualified tuition program for the same or another beneficiary. If the beneficiary stays the same, the transfer will be treated as a Federal Qualified Rollover Distribution as long as the transfer does not occur within twelve (12) months from the date of a previous rollover to another 529 qualified tuition program for the beneficiary. If the beneficiary changes, the transfer will be treated as a Federal Qualified Rollover Distribution only if the new beneficiary is a Member of the Family of the former beneficiary. A rollover to an out-of-state 529 qualified tuition program will be an Illinois Nonqualified Withdrawal. Illinois law provides for the recapture of Illinois state tax benefits in the event of an Illinois Nonqualified Withdrawal by increasing the adjusted gross income of an Illinois taxpayer who previously took an Illinois state income tax deduction for Contributions made to the Program. Before rolling over an Account to an out-of-state 529 qualified tuition program, you should consult with your tax or legal advisor. Are There Tax Consequences to Changing the Account Owner? A change of Account ownership may also have gift and/or GST tax consequences. This area of the law is uncertain at this time. Accordingly, Account Owners should consult their own tax or legal advisor for guidance when considering a change of Account ownership. What Are the Tax Benefits for Employer Matching Contributions? For taxable years ending on or before December 31, 2024, employers that match employees’ contributions to the Program, College Illinois! or the Bright Start Direct-Sold College Savings Program, are eligible for an Illinois state tax credit. Employers receive a tax credit equal to 25% of the matching Contributions the employer makes to its employee’s Account in the Program, College Illinois!, or the Bright Start Direct-Sold College Savings Program, up to a maximum annual tax credit of $500 per contributing employee. Employers should consult a tax advisor regarding the availability and ramifications of this credit. May I Recontribute a Refunded Amount to an Account? In the case of a Beneficiary who receives a refund of any Federal Qualified Higher Education Expenses from an Institution of Higher Education, the amount refunded will not be subject to federal income tax to the extent it is recontributed to a 529 qualified tuition program account for the same Beneficiary, but only to the extent such recontribution is made no later than sixty (60) days after the date of such refund and does not exceed the refunded amount. It is the responsibility of the Account Owner to keep all records of the refunds and subsequent recontributions. Consult a tax or legal advisor to determine your eligibility for this treatmentmore information.