SB 657: Personal Income Tax Law: deferred compensation: exclusions: long-term qualified tuition program.

The bill aims to conform California state tax law to federal law regarding qualified tuition programs. It would exempt from gross income distributions made from a long-term qualified tuition program, paid in a direct trustee-to-trustee transfer to a Roth IRA, for taxable years starting January 1, 2025, and before January 1, 2030. This change is made to align with the federal law that excludes such distributions from gross income for federal income tax purposes, provided they are made after December 31, 2023, and are paid in a direct trustee-to-trustee transfer to a Roth IRA. The bill would take effect immediately as a tax levy and requires additional information for any bill authorizing a new tax expenditure.