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CollegeCounts 529

The CollegeCounts 529 Fund is a qualified tuition program under Section 529 of the Internal Revenue Code that is offered by the State of Alabama. CollegeCounts makes it easy for parents, grandparents, family and friends to invest in the next generation.  The program is simple, offers significant tax advantages, requires no minimum contribution and allows for easy to set up automatic contributions.

To learn more, visit the CollegeCounts 529 website.

K-12 Tuition Expense

Certain sections of the Alabama income tax statute refer to definitions in Code Section 529, as amended, including the definition of “Qualified Higher Education Expenses.” For years after 2017, amendments to Code Section 529 treat withdrawals for tuition in connection with enrollment or attendance at an elementary or secondary school, whether public, private or religious, with a limit of $10,000 per year, per child collectively from all 529 plans to be “Qualified Higher Education Expenses.” Consequently, a Designated Beneficiary may be able to use the amounts in a Plan Account to pay for K-12 Tuition Expenses (as defined herein) without incurring adverse tax consequences. However, the Act (which has not been amended since adoption of the Code Section 529 amendments referred to above) only covers expenses at “eligible educational institutions.” The definition of this term in Code Section 529 does not appear to cover K-12 schools, although Internal Revenue Service Publication 970 provides that an “eligible educational institution” “can be either an eligible postsecondary school or, for amounts paid from distributions made after December 31, 2017, an eligible elementary or secondary school.” Publication 970 does not have the same authority as Code Section 529, and the Program recommends that taxpayers seek tax advice from an independent tax advisor with respect to their ability to use the Program to pay K-12 Tuition Expenses without incurring adverse tax consequences.

Information on this and other Alabama 529 Program topics can be found on the Alabama Department of Revenue’s site here: https://revenue.alabama.gov/individual-corporate/alabama-529-savings-plan-faq/.  Please note the answer to the third question “What is a nonqualified withdrawal from an Alabama 529 Savings Plan?

CollegeCounts Board of Directors

State Treasurer Young Boozer, Chair, Montgomery, AL
Daniel Hughes, Vice Chair, Montgomery, AL
Dennis Beavers, Blountsville, AL
Jim Purcell, Montgomery, AL
Jimmy Baker, Montgomery, AL
Edward Reifenberg, Montgomery, AL
VACANT, Lt. Governor of Alabama, Montgomery, AL
Heidi Lee, Montgomery, AL
Ken Tucker, Livingston, AL
Jack Knight, Birmingham, AL
Ron Stokes, Birmingham, AL

CollegeCounts 529 Board Meeting Materials

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UBT_CollegeCounts Scholarship logo_4CIn 2012 the CollegeCounts Board of Directors and State Treasurer Young Boozer introduced the CollegeCounts Scholarship Program.  This scholarship was established to provide funding assistance to Alabama high school students with demonstrated
financial need to attend college for the betterment of the student and the state. Scholarships are determined through an application process and awarded for a student’s freshman year only.

To learn more about this scholarship or to apply visit CollegeCounts Scholarship website.

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