Utah rules on state tax treatment of rollovers
The Utah State Tax Commission has ruled that rollovers into the Utah 529 plan from another state's 529 plan are eligible for the Utah income tax deduction. (Private Letter Ruling, Opinion 06-016, 8/3/06.) The same holds true for contributions that come from the liquidation of Coverdell ESAs and U.S. savings bonds.
A rollover out of Utah's 529 plan to another 529 plan is a nonqualified distribution for Utah purposes, causing recapture of deductions claimed on those funds.
Return to 529 News centerA rollover out of Utah's 529 plan to another 529 plan is a nonqualified distribution for Utah purposes, causing recapture of deductions claimed on those funds.