New tax legislation includes changes to Section 529 college savings plans
The tax plan signed into law on December 22, 2017 includes provisions related to 529 college savings plans. Provisions of the tax law include the expansion of qualified education expenses in Section 529 of the Internal Revenue Code to include expenses for tuition for K-12 up to $10,000 per year per student. The tax treatment of such withdrawals will be determined by the taxpayer’s state of residence. The tax law also allows for 529 plan accounts balances to be rolled over to ABLE accounts without penalty under specified circumstances. We encourage you to consult a qualified tax advisor about your personal situation.
Details associated with this new legislation are currently being reviewed, and we will share more specific information as soon as it becomes available. Please check back periodically for updates.
CHET Advisor is administered by the Treasurer of the State of Connecticut as the trustee of the Connecticut Higher Education Trust Program and Hartford Funds Management Company, LLC (“HFMC”) serves as Plan Manager.
Investments in CHET Advisor are not guaranteed or insured by the State of Connecticut, the Connecticut Higher Education Trust Program, the Connecticut State Treasurer's Office, HFMC, The Hartford Financial Services Group, Inc., the investment sub-advisors for the Underlying Funds or any depository institution and are subject to investment risks, including the loss of the principal amount invested, and may not be appropriate for all investors.
CHET Advisor is only available to account owners who are Connecticut (CT) residents. CT provides certain tax advantages to CT taxpayers that invest in CHET Advisor. Before investing, an investor should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.
Investors should carefully consider the investment objectives, risks, charges and expenses of CHET Advisor and its Underlying Funds before investing. This and other information can be found in the Disclosure Booklet for CHET Advisor and the prospectuses or other disclosure documents for the Underlying Funds, which can be obtained in the College Savings pages of www.hartfordfunds.com or by calling 877-407-2828. Please read them carefully before investing or sending money. CHET Advisor is distributed by Hartford Funds Distributors, LLC. Member SIPC
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice.
"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries.
No state funds have been used to produce these materials nor have materials been produced at taxpayer expense.