This bill proposes several updates to the current statutes governing Arizona's Education Savings Plan (AZ529). It modifies the definitions of "qualified higher education expenses" and "qualified withdrawal" to align with the U.S. Internal Revenue Code, allowing for a broader range of expenses and increasing the maximum withdrawal limit from $10,000 to $20,000 for qualified expenses. Additionally, it redefines "member of the family" to match the IRS definition, thereby simplifying the eligibility criteria for account beneficiaries. The bill also removes the requirement for contributors' personal information in the application process, streamlining account setup.

Furthermore, the bill introduces provisions that allow for the transfer of AZ529 account funds to a Roth IRA or an Achieving a Better Life Experience (ABLE) account under specific conditions. These conditions include maintaining the account for a minimum of 15 years and ensuring that the transferred funds meet certain criteria regarding contributions and earnings. The legislation aims to enhance the flexibility and utility of the AZ529 Plan, making it more beneficial for families saving for education.

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