529 PLANS

529 News

Alabama bills to provide deduction, remove out-of-state penalty

(March 17, 2008) - The Alabama legislature is considering legislation that would:
(1) Provide an Alabama tax deduction of up to $5,000 per year for contributions to an Alabama 529 plan, and further provide that a nonqualified withdrawal from an Alabama 529 plan, plus 10 percent of the withdrawal, be included in Alabama taxable income (HB 43);
(2) Would provide withdrawal parity by exempting from Alabama income a distribution from any 529 plan that is for qualified higher education expenses or is eligible for the 10-percent federal penalty waiver (HB 694).

Both bills have an effective date for years beginning on or after January 1, 2008.

Return to 529 News center.

 

Reset email successfully sent.
Please check your inbox.

Close
page loadtime mark

Advertisement


close