Governor signs fixes to Idaho 529 plan
House Bills 68 & 69 were passed and signed by the Governor last week.The
most important change is the elimination of the 200% penalty on the earnings for non-qualified withdrawals.This penalty was actually an inadvertant mistake and was never implemented.Additionally, Idaho eliminated the 10% penalty on the earnings of nonqualified withdrawals - now that the Federal penalty is in place.Finally, the legislation allows the plan to more easily conform to any future changes in the federal code.
Return to 529 News centermost important change is the elimination of the 200% penalty on the earnings for non-qualified withdrawals.This penalty was actually an inadvertant mistake and was never implemented.Additionally, Idaho eliminated the 10% penalty on the earnings of nonqualified withdrawals - now that the Federal penalty is in place.Finally, the legislation allows the plan to more easily conform to any future changes in the federal code.