The proposed bill seeks to update Arizona's Education Savings Plan (AZ529) by modifying definitions and provisions to align with the U.S. Internal Revenue Code. It will redefine "member of the family" to match federal definitions, removing the current detailed list of familial relationships. Additionally, the definition of "qualified higher education expenses" will be updated to reflect the federal standard, with specific modifications noted in the Internal Revenue Code. The bill also increases the maximum amount for qualified withdrawals from $10,000 to $20,000 for elementary or secondary school expenses and introduces provisions for transferring AZ529 funds to a Roth IRA or an ABLE account under certain conditions.

Moreover, the bill will eliminate the requirement for contributors to provide personal information, such as their name and social security number, in the AZ529 application. These changes aim to modernize the AZ529 program, enhance its flexibility, and improve accessibility for Arizona residents, ensuring that the program remains in line with recent federal legislation.

Statutes affected:
Introduced Version: 15-1871, 15-1875, 15-1873
House Engrossed Version: 15-1871, 15-1875, 15-1873
Chaptered Version: 15-1871, 15-1875, 15-1873
Senate Engrossed Version: 15-1871, 15-1875, 35-323, 35-326, 41-172, 41-181, 15-1873, 35-323.01, 11-635, 35-392, 32-2101, 35-131, 37-202, 35-318, 41-1750, 92-544