Further Consolidated Appropriations Act of 2020 Information

Further Consolidated Appropriations Act of 2020 Information

On December 20, 2019, the federal Further Consolidated Appropriations Act of 2020 was signed into law. It includes new provisions that allow 529 Plan account owners to withdraw assets to pay for certain apprenticeship programs and to pay principal and interest on qualified higher education loans for the beneficiary or any of the beneficiary’s siblings. The loan repayment provisions apply to repayments up to $10,000 per individual. These withdrawals will have no federal tax impact. It has not yet been determined whether these types of withdrawals will have New York State income tax consequences. This Act is effective for distributions made after December 31, 2018. The new federal law continues to be evaluated as does the tax impact in New York. Click here to view the law.

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