Oklahoma adopts 529 recapture rules

Oklahoma's governor has signed legislation (S.B. 854) that requires the recapture of deductions claimed for contributions to Oklahoma's 529 plan in the event funds are later withdrawn on a non-qualified basis or rolled over to another 529 plan. The recapture does not apply where the non-qualified withdrawal is the result of the beneficiary's death, disability, or receipt of a tax-free scholarship.

The new recapture rule is first effective for the 2007 tax year.
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