RÉSUMÉ DIGEST
ACT 56 (SB 78) 2020 Regular Session Foil
Prior law provided for two education savings programs that are qualified tuition programs
as defined in Section 529 of the federal Internal Revenue Code:
(1)The La. Student Tuition Assistance and Revenue Trust (START) Program (created
in 1995) is for certain expenses associated with enrolling in an institution of
postsecondary education. Present law provides for earnings enhancements (a "state
match") annually, the rate of which depends on the account category and the account
owner's income. Also exempts a portion of annual deposits from the account owner's
state tax table income (up to $2,400 for single filers and $4,800 for joint filers, per
account).
(2)The La. Student Tuition Assistance and Revenue Trust Kindergarten Through Grade
Twelve (START K12) Program (created in 2018) is similar to the START program
except that it is for certain expenses associated with enrolling in grades kindergarten
through 12. Defines such expenses as tuition in connection with enrollment or
attendance at a public or approved nonpublic elementary or secondary school in La.
Limits disbursements of such expenses to a maximum of $10,000 per tax year, per
beneficiary. Does not provide a state match or for exemption of a portion of annual
deposits from an account owner's state tax table income.
Prior law prohibited a transfer or rollover from a START account to a START K12 account.
However, as a transitional provision with respect to the then-newly created START K12
program, in 2018, funds deposited prior to Jan. 1, 2018, to a START account were allowed
to be disbursed in 2018 to pay tuition at an elementary or secondary school. Any such
disbursement did not include earnings enhancements or interest thereon and the total amount
of such disbursements with respect to a beneficiary was limited to $10,000.
New law allows disbursement of funds in 2020 from a START account to pay tuition at an
elementary or secondary school as defined by START K12. Disbursements shall not include
earnings enhancements or interest thereon and shall be limited with respect to a beneficiary
to $10,000.
Effective August 1, 2020.
(Adds R.S. 17:3095(I)