Important Updates to Your College Savings Plan

On December 18, 2015, President Obama signed a bill into law that included several enhancements to 529 College Savings Plans. These enhancements benefit your investment in your child's college education.

Computer Technology and Equipment are now allowed as a Qualified Higher Education Expense

The purchase of a computer and any related equipment, computer software, internet access and related services to be used primarily by your child for educational purposes while enrolled at an eligible educational institution is now considered a qualified higher education expense.

This is effective for taxable years beginning after December 31, 2014.

Special Rule for Recontribution of Refunded Amounts

A refund of a qualified higher education expense received by a beneficiary from an eligible educational institution can be recontributed to your Scholar's Edge 529 College Savings Plan and will not be treated as a non-qualified withdrawal if the recontribution is made no more than 60 days after the date of the refund and the recontributed amount does not exceed the amount of the refund.

A special rule provides that refunds received after December 31, 2014 and before December 18, 2015, may be recontributed no later than 60 days after December 18, 2015.



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This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.

Scholar's Edge® is operated as a qualified tuition program offered by The Education Trust Board of New Mexico and is available to all U.S. residents. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program manager for Scholar's Edge and OppenheimerFunds Distributor, Inc. is the distributor of Scholar's Edge. Some states offer favorable tax treatment to their residents only if they invest in the state's own plan. Investors should consider before investing whether their or their designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program, such as financial aid, scholarship funds, and protection from creditors, and should consult their tax advisor. These securities are neither FDIC insured nor guaranteed and may lose value.

Before investing in the Plan, investors should carefully consider the investment objectives, risks, charges and expenses associated with municipal fund securities. The Plan Description contain this and other information about the Plan, and may be obtained by asking your financial advisor, by visiting www.scholarsedge529.com or calling 1.866.529.SAVE (1.866.529.7283). Investors should read these documents carefully before investing.

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