Pennsylvanians can now deduct contributions to any 529 plan
Pennsylvania Governor Edward Rendell signed a budget bill on July 2, 2006 that provides a Pennsylvania income tax deduction for contributions to any 529 plan. The annual contribution limit is tied to the federal gift tax annual exclusion amount, currently $12,000. In addition, qualified distributions and rollovers from any 529 plan are excluded from Pennsylvania income, removing the disparity that previously existed. The effective date appears to be January 1, 2006.
Return to 529 News center