Indiana enacts 529 tax recapture
A new law in Indiana provides that an account owner of an Indiana College Choice 529 account must repay a portion of a previously-claimed Indiana tax credit if any nonqualified withdrawal is made from the plan. The law includes as nonqualified withdrawals any withdrawals made from an account that is terminated within 12 months after the account is opened, rollovers to another 529 plan, and other withdrawals that do not meet the requirements of a qualified withdrawal.
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