Qualified Withdrawals. A withdrawal used to pay Qualified Higher Education Expenses of the Designated Beneficiary is a Qualified Withdrawal.
Qualified Withdrawals. It is the Account Owner’s and Beneficiary’s responsibility, as applicable, to obtain and retain documents related to the withdrawal to substantiate the withdrawal classification to the Internal Revenue Service.
Qualified Withdrawals. To be a Qualified Withdrawal, the withdrawal must be used to pay for the Qualified Higher Education Expenses of the Beneficiary, or sibling of the Beneficiary, where applicable. No portion of a Qualified Withdrawal is subject to federal income tax, including the Additional Tax. Qualified Higher Education Expenses are defined generally to include certain room and board expenses, the cost of computers, hardware, certain software, and internet access and related services, and tuition, fees, the cost of books, supplies and equipment required for the enrollment or attendance of a Beneficiary at an Eligible Educational Institution, as well as certain additional enrollment and attendance costs of Beneficiaries with special needs. To be treated as Qualified Higher Education Expenses, computers, hardware, software, and internet access and related services must be used primarily by the Beneficiary while enrolled at an Eligible Educational Institution. Qualified Higher Education Expenses do not include expenses for computer software designed for sports, games or hobbies unless the software is predominantly educational in nature. Unlike other expenses, the cost of room and board may be treated as Qualified Higher Education Expenses only if it is incurred during an academic period during which the Beneficiary is enrolled or accepted for enrollment in a degree, certificate or other program that leads to a recognized educational credential awarded by an Eligible Educational Institution, and during which the Beneficiary is enrolled at least half-time. (Half-time is defined as half of a full-time academic workload for the course of study the Beneficiary is pursuing based on the standard at the Beneficiary’s Eligible Educational Institution.) The amount of room and board expenses that may be treated as a Qualified Higher Education Expense is generally limited to the room and board allowance applicable to a student that is included by the Eligible Educational Institution in its “cost of attendance” for purposes of determining eligibility for federal education assistance for that year. For students living in housing owned or operated by the Eligible Educational Institution, if the actual invoice amount charged by the Eligible Educational Institution for room and board is higher than the “cost of attendance” figure, then the actual invoice amount may be treated as qualified room and board costs. For federal income tax purposes, any reference to Qualified Higher Education Expen...
Qualified Withdrawals. If a Qualified Withdrawal is made from an account, no portion of the distribution is includable in the gross income of the Account Owner. A Qualified Withdrawal is a withdrawal that is solely used to pay the Account Owner’s Qualified Disability Expenses.
Qualified Withdrawals. If a Qualified Withdrawal is made from a STABLE Account, no portion of the distribution is includable in the gross income of the Beneficiary for purposes of federal and Ohio state income taxes. A Qualified Withdrawal is a withdrawal that is solely used to pay the Qualified Disability Expenses of the Beneficiary.
Qualified Withdrawals. The earnings portion (if any) of a Non-Qualified Withdrawal will be treated as ordinary income to the recipient and may also be subject to an additional 10% federal tax, as well as partial recapture of any Nebraska state income tax deduction previously claimed. ..........................................................................................................................................................................................................
Qualified Withdrawals. A Qualified Withdrawal is a withdrawal from your STABLE Account that is used to pay for any Qualified Disability Expenses of the Beneficiary. Qualified Disability Expenses are any expenses that (1) are incurred at a time when the Beneficiary is an Eligible Individual,
Qualified Withdrawals. A Non-Qualified Withdrawal is any withdrawal that does not meet the requirements of being: (1) a Qualified Withdrawal; or (2) a rollover from a STABLE Account to another ABLE Account or out of the Plan. The earnings portion of a Non-Qualified Withdrawal is subject to federal income taxation and the Additional 10% Tax except in certain limited circumstances. See “Tax Considerations” for more information. Information regarding the Ohio income taxation of withdrawals from a STABLE Account may be found in “Tax Considerations.” Information regarding tax treatment in Partner States may be found in the Partner State Supplements at the end of this Plan Disclosure Statement. This Plan Disclosure Statement does not address the potential effects of the tax laws of any states other than Ohio and Partner States. You should consult a qualified tax advisor regarding how both state and federal tax laws may apply to your particular circumstances. Qualified Rollovers to Another ABLE Account ABLE to ABLE Rollover A tax-free Rollover of funds into an ABLE Account from a STABLE Account may be made as described herein if the Beneficiary of the recipient account is the same Beneficiary or a Sibling of the Beneficiary – as defined by Code Section 529A – who is an Eligible Individual. Both a Direct and an Indirect Rollover can be initiated by completing the ABLE to ABLE Rollover Form and delivering the completed Form to the STABLE Account Plan Manager. In the case of an Indirect ABLE to ABLE Rollover, the STABLE Account from which amounts were rolled, or taken from, must be closed as of the 60th day after the amount was distributed from the STABLE Account in order for the account that received the Rollover to be treated as an ABLE Account. If the account that receives the transfer is not treated as an ABLE Account, the account will not be eligible for the benefits of ABLE Accounts. For example, the account will not be disregarded for determining eligibility under federal means-tested programs, such as SSI, and could result in the imposition of federal taxes and penalties. To avoid any potential disqualification of an ABLE Account in the Plan, the Plan requires you to certify that the ABLE Account from which a Rollover is being made into the Plan has been closed before the ABLE Account in the Plan is opened. College 529 Account to ABLE Rollover A tax-free Rollover of funds into a STABLE Account from a qualified College 529 plan may be made as described herein if the Beneficiary of ...
Qualified Withdrawals. Non-Qualified Withdrawals are all Withdrawals other than Qualified Withdrawals. Non-Qualified Withdrawals will be subject to federal income tax on the earnings and Virginia state income tax on the earnings for Virginia taxpayers, as well as a federal penalty of 10% of the earnings, reported on the taxpayer’s federal tax return. Non-Qualified Withdrawals may require the recapture of some or all amounts, if any, that the Account Owner deducted from his or her Virginia taxable income due to Contributions to an Invest529 Account. Non-Qualified Withdrawals due to a Beneficiary’s death, Disability or receipt of a scholarship (including attendance at a U.S. military academy) will not be subject to the 10% federal penalty on earnings. Scholarship Withdrawals are limited to the amount of the scholarship. Virginia529 will not withhold taxes or penalties due on a Non-Qualified Withdrawal. The taxpayer is responsible for properly documenting and reporting taxes and penalties due on the taxpayer’s federal and state tax returns. Virginia529 does not perform these duties for the taxpayer. Account Owners who do not pay Virginia income tax should check with their state tax department to determine the treatment of Non-Qualified Withdrawals.
Qualified Withdrawals. A Qualified Withdrawal is a withdrawal from an Account used to pay for Qualified Disability Expenses. Qualified Withdrawals are federal income tax free for the Beneficiary. They are also California income tax free if the Beneficiary is subject to California income tax. Qualified Disability Expenses are any expenses incurred at a time when the Beneficiary is an Eligible Individual that relate to the blindness or disability of the Beneficiary, and are for the benefit of the Beneficiary in maintaining or improving his or her health, independence, or quality of life. Such expenses include, but are not limited to, expenses for education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and other expenses that may be identified from time to time in future guidance published by the IRS. In order to implement the legislative purpose of assisting Eligible Individuals in maintaining or improving their health, independence, and quality of life, the U.S. Treasury Department and the IRS have taken the position that the term “Qualified Disability Expenses” should be broadly construed to permit the inclusion of basic living expenses and should not be limited to expenses for items for which there is a medical necessity or which provide no benefits to others in addition to the benefit to the Eligible Individual. For example, expenses for common items such as smart phones could be considered Qualified Disability Expenses if they are an effective and safe communication or navigation aid for a child with autism.
