Bill > AB2444

This bill aims to align California's personal income tax laws with federal regulations concerning qualified tuition programs, specifically the Golden State Scholarshare Trust (Scholarshare trust), which helps families save for postsecondary education. Starting in taxable years 2026 through 2029, it allows distributions from these programs to be transferred tax-free to a Roth IRA, mirroring a federal change. Additionally, for taxable years beginning on or after January 1, 2026, the bill introduces a new deduction for contributions made to a Scholarshare account, with limits based on filing status and income, up to $10,000 for joint filers or heads of household and $5,000 for others, provided their adjusted gross income (AGI) does not exceed $150,000 for joint filers/heads of household or $75,000 for others. The AGI limits will be adjusted for inflation annually starting in 2027. The bill also includes provisions for reporting on the effectiveness of these tax incentives and takes effect immediately as a tax levy.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2444