529 plan recapture tax on rollovers

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Revision as of 16:44, 30 May 2009 by Blbarnitz (talk | contribs) (updated Indiana data)

The following table lists states currently giving tax deductions on 529 plan contributions and imposing a recapture tax on rollovers of in-state 529 plans to an out of state plan. Expense ratios on indexed portfolios are provided.

Alabama taxpayers must pay state tax on earnings rolled into an Alabama 529 plan. Alabama tax treatment of earnings rolled out of an Alabama 529 plan is unclear. Alabama law exempts qualified distributions from an Alabama 529 plan but does not exempt distributions from a non-Alabama 529 plan. The Alabama 529 Plan offers an indexed stock and an indexed bond portfolio at a 0.60% expense ratio.

Missouri:A rollover that is a not a direct trustee-to-trustee rollover is considered a nonqualified withdrawal for Missouri tax purposes and is subject to recapture tax.

See the highlighted plan Wiki pages for details and links to information.


State Recapture Tax on Rollovers Index Fund ER Index Manager
Arkansas Yes 0.85% Vanguard
Colorado Yes 0.75% Vanguard
District of Columbia [1] Yes 0.50% Calvert
Georgia Yes 0.50% to 0.76% TIAA-CREF
Idaho Yes 0.75% Vanguard
Illinois Yes 0.20% to 0.23% Vanguard
Indiana Yes 0.35% to 0.51% Vanguard
Iowa Yes 0.52% Vanguard
Montana Yes none none
Nebraska Yes 0.65% to 0.84% Vanguard
New Mexico Yes none none
New York Yes 0.55% Vanguard
North Carolina Yes 0.40% to 0.52% Vanguard
Oklahoma Yes 0.79% to 0.99% TIAA-CREF
Rhode Island [2] Yes 0.39% Vanguard
Utah Yes 0.22% - 0.34% Vanguard
Virginia Yes 0.31% to 0.51% Vanguard

Notes

  1. The District of Columbia offers only one stock index portfolio.
  2. Rhode Island offers only one stock index portfolio.