How to get your 529 college fund listed in CalPERS’ tax return
A 529 college education fund, like many others, is not a household name in the state of California, but the state is considering listing the fund in its tax filings.
California Secretary of State Alex Padilla said the 529 college college education tax exemption is available for any 529 college account that was opened before Jan. 1, 2018.
The 529 college exemption is a new feature in California’s 529 college tax law that makes 529 college accounts exempt from California’s personal income tax and sales tax.
The tax exemption also allows 529 college funds to qualify for tax breaks and other incentives.
The state’s 529 tax exemption will expire Jan. 31.
Padilla could not say whether he plans to extend the 529 exemption to all 529 college educations.
California has the third-highest state college education enrollment in the country behind California and New York.
The CalPers college education program helps fund college and university education for low-income students.
Its mission is to ensure all students receive a quality education at an affordable cost through scholarship, grants, internships and professional development programs.
The federal government has also made 529 education more affordable through tax credits and loans.