The proposed bill updates Arizona's education savings plan statutes by aligning definitions and provisions with federal law, specifically Section 529 of the Internal Revenue Code. It modifies the definitions of "member of the family" and "qualified higher education expenses" to reflect the federal standards, replacing the existing detailed definitions with a reference to the federal definitions. Additionally, the bill increases the limit on qualified withdrawals for elementary and secondary education expenses from $10,000 to $20,000 and establishes a permanent transfer option to an Achieving a Better Life Experience (ABLE) account.

Furthermore, the bill introduces new provisions allowing account owners to transfer funds to a Roth individual retirement account under specific conditions, including maintaining the account for at least 15 years and ensuring that the total transferred does not exceed $35,000. It also removes certain identifying information requirements for contributors in the application process and mandates that account statements be provided annually to account owners. Overall, these changes aim to enhance the flexibility and usability of Arizona's 529 education savings plan.

Statutes affected:
Introduced Version: 15-1871, 15-1875, 15-1873