Update on the Tax Benefits Of QSTPs

By Ron West, JD, LLM, CPA, Farleigh Dickinson University

The following chart summarizes the changes made to IRC section 529 Qualified State Tuition Programs (QSTP) by the Economic Growth and Tax Relief Reconciliation Act of 2001. The new provisions (with a minor exception) are effective for taxable years beginning after December 31, 2001. This updates the information previously provided in “Tax Benefits of Qualified State Tuition Programs” by Ron West (June 2001, p. 26). q

The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments.