By Gretchen Reed, CFO
Gretchen Reed joined OES in 2015. She has more than two decades of experience in education and nonprofit finance, including serving as CFO at other independent schools, association executive, assistant treasurer of a liberal arts college, and an investment banker for public and nonprofit clients. Her volunteer experience includes being president, search chair, treasurer and parent committee president for several nonprofits and schools. She earned her AB from Occidental College and her MBA from Northwestern University’s Kellogg School of Management.
In January, I wrote that the status of whether a 529 plan can be used to pay K-12 tuition in Oregon was not yet clear. In April, Governor Brown signed into law Oregon HB 4080, which clarifies the tax treatment in Oregon. Essentially, if a taxpayer pays K-12 tuition with 529 funds and a state tax deduction was taken when the contribution to the 529 was made, that tax deduction must be repaid. Further, any earnings on the amount withdrawn are subject to state income tax. The effect of this law means that there is no state tax benefit in Oregon when using a 529 plan to pay K-12 tuition.