Wisconsin governor signs law to extend 529 plan tax deduction benefits

Senate Bill 389, which provides a number of changes to the existing Wisconsin state tax deduction for 529 plan contributions, has been signed into law. Among the changes:

  • All contributions in excess of the maximum limit may be carried forward for an unlimited number of years.

  • Any contributor who is a wisconsin tax payer may contribute to any wisconsin 529 plan account and receive an income tax deduction for their contributions, regardless of their relationship to the beneficiary.

  • The maximum annual deductible limit will be increased annually to reflect inflation.

  • The deadline for making the annual deductible contribution will be extended to April 15th of the following year.

  • Deductions taken for contributions and later withdrawn as a non-qualified distribution will be subject to recapture.

  • Wisconsin 529 accounts will not be subject to claims by creditors.
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