Compare 529 Plans by Features

State tax treatment of qualified distributions

There is no federal income tax on qualified withdrawals. For federal gift and estate tax purposes, contributions from third parties are generally considered completed gifts to the beneficiary. Contributions to an ABLE Account may also be eligible for the Saver's Credit under Section 25B(d)(1) of the IRS Code. Contributions are subject to the annual federal gift tax exclusion. There are no Alabama state income taxes due on investment earnings on qualified withdrawals.

Alabama law exempts qualified distributions from an Alabama 529 plan but does not exempt distributions from a non-Alabama 529 plan.

Alabama law exempts qualified distributions from an Alabama 529 plan but does not exempt distributions from a non-Alabama 529 plan.

Not applicable. Alaska does not have a personal income tax.

Not applicable. Alaska does not have a personal income tax.

Not applicable. Alaska does not have a personal income tax.

Distributions used to pay for qualified education expenses are generally exempt from taxes. If a distribution is nonqualified, any earnings portion of the distribution may be subject to federal income taxes as well as a 10% federal tax penalty. The distribution may also be subject to state income tax laws as applicable.

Earnings are not subject to Arizona state income tax while they remain in your STABLE Account. There is no Arizona state income tax on qualified withdrawals, to the extent such transactions are exempt from U.S. federal income taxation under Section 529A. The earnings portion of a non-qualified withdrawal may be included in the Arizona income of the beneficiary and may be subject to Arizona state income tax.

Qualified distributions from Arizona and non-Arizona 529 plans are exempt.

Qualified distributions from Arizona and non-Arizona 529 plans are exempt.

Qualified distributions from Arizona and non-Arizona 529 plans are exempt.

Interest, dividends, and capital gains from funds invested in the plan are exempt from Arkansas income taxes. A qualified distribution from an account established under the plan is exempt from Arkansas income tax with respect to the designated beneficiary's income.

Qualified distributions from Arkansas and non-Arkansas 529 plans are exempt.

Qualified distributions from Arkansas and non-Arkansas 529 plans are exempt.

The earnings portion of qualified withdrawals will not be included in taxable income for California state tax purposes.

Qualified distributions from California and non-California 529 plans are exempt.

The earnings portion of qualified withdrawals will not be included in taxable income for Colorado state tax purposes.

Qualified distributions from Colorado and non-Colorado 529 plans are exempt.

Qualified distributions from Colorado and non-Colorado 529 plans are exempt.

Qualified distributions from Colorado and non-Colorado 529 plans are exempt.

Qualified distributions from Colorado and non-Colorado 529 plans are exempt.

For federal income tax purposes, distributions, including earnings, are tax-free to the designated beneficiary if used to pay qualified disability expenses. This means that the distributions are not included in income when determining the taxpayer's federal adjusted gross income and are also not included in the taxpayer's Connecticut adjusted gross income.

Qualified distributions from Connecticut and non-Connecticut 529 plans are exempt. Nonqualified distributions from Connecticut 529 plans made to the account beneficiary are also exempt (i.e. income reported for federal purposes may be subtracted on the CT tax return).

Qualified distributions from Connecticut and non-Connecticut 529 plans are exempt. Nonqualified distributions from Connecticut 529 plans made to the account beneficiary are also exempt (i.e. income reported for federal purposes may be subtracted on the CT tax return).

Qualified distributions from Delaware and non-Delaware 529 plans are exempt.

There are no Delaware income taxes due on investment earnings in an account in DEPENDABLE when used to pay for qualified disability expenses.

There are no District of Columbia income taxes due on investment earnings in an account in DC ABLE when used to pay for qualified disability expenses.

Qualified distributions from District of Columbia and non-DC 529 plans are exempt.

Not applicable. Florida does not have a personal income tax.

Not applicable. Florida does not have a personal income tax.

Not applicable. Florida does not have a personal income tax.

There is no Georgia state income tax on qualified withdrawals, to the extent such transactions are exempt from U.S. federal income taxation under Section 529A. The earnings portion of a non-qualified withdrawal may be included in the Georgia income of the beneficiary and may be subject to Georgia state income tax.

Qualified distributions from Georgia and non-Georgia 529 plans are exempt. Note: if a withdrawal from the Georgia 529 plan is non-qualified, the earnings must be reported on the account owner's, not the beneficiary's, Georgia income tax return.

Qualified distributions from Hawaii and non-Hawaii 529 plans are exempt.

Qualified distributions from Hawaii and non-Hawaii 529 plans are exempt.

Qualified distributions from Idaho and non-Idaho 529 plans are exempt.

Qualified distributions from an Illinois 529 plan are exempt. Qualified distributions from a non-Illinois plan are exempt provided the plan meets certain disclosure requirements.

Qualified distributions from an Illinois 529 plan are exempt. Qualified distributions from a non-Illinois plan are exempt provided the plan meets certain disclosure requirements.

Qualified distributions from an Illinois 529 plan are exempt. Qualified distributions from a non-Illinois plan are exempt provided the plan meets certain disclosure requirements.

If a withdrawal is taken from an account to pay for qualified disability expenses, the account owner generally does not have to include as income any earnings attributable to that withdrawal for the applicable taxable year if the total withdrawals for that year are less than or equal to the total withdrawals for qualified disability expenses for that year.

Qualified distributions from Indiana and non-Indiana 529 plans are exempt.

Qualified distributions from Indiana and non-Indiana 529 plans are exempt.

Qualified distributions from Indiana and non-Indiana 529 plans are exempt.

For Indiana state income tax purposes, annual earnings of an ABLE account shall be exempt from tax, and shall not be included in the Indiana income of the account owner. The earnings portion of a withdrawal to pay for qualified disability expenses is also not subject to Indiana state income tax.

Qualified distributions from Iowa and non-Iowa 529 plans are exempt.

Any earnings on contributions are not subject to Iowa state income tax, which means account assets grow free of current Iowa income tax and are tax-free if withdrawn.

Qualified distributions from Iowa and non-Iowa 529 plans are exempt.

For Kansas state income tax purposes, annual earnings of an ABLE account shall be exempt from tax, and shall not be included in the Kansas income of the account owner. The earnings portion of a withdrawal to pay for qualified disability expenses is also not subject to Kansas state income tax.

Qualified distributions from Kansas and non-Kansas 529 plans are exempt.

Qualified distributions from Kansas and non-Kansas 529 plans are exempt.

Qualified distributions from Kansas and non-Kansas 529 plans are exempt.

Qualified distributions from Kentucky and non-Kentucky 529 plans are exempt.

Contributions to the plan are not deductible for Kentucky state income tax purposes. The Kentucky Department of Revenue has not yet issued further guidance regarding the Kentucky state income tax treatment of STABLE Accounts.

If a withdrawal is taken from an Account to pay for qualified disability expenses, the account owner generally does not have to include as income any earnings attributable to that withdrawal for the applicable taxable year if the total withdrawals for that year are less than or equal to the total withdrawals for qualified disability expenses for that year.

Qualified distributions from Louisiana and non-Louisiana 529 plans are exempt.

Qualified distributions from Maine and non-Maine 529 plans are exempt.

Qualified distributions from Maine and non-Maine 529 plans are exempt.

Qualified distributions from Maryland and non-Maryland 529 plans are exempt.

Qualified distributions from Maryland and non-Maryland 529 plans are exempt.

If a qualified withdrawal is made from an ABLE account, no portion of the distribution may be included in the gross income of the beneficiary for purposes of federal and Maryland state income taxes.

Distributions taken to pay for qualified disability expenses will not be subject to Massachusetts income tax.

Qualified distributions from Massachusetts and non-Massachusetts 529 plans are exempt.

As a Massachusetts general obligation bond, earnings from the U.Plan are exempt from Massachusetts tax. Massachusetts law also exempts qualified distributions from Massachusetts and non-Massachusetts 529 plans.

Qualified distributions from Michigan and non-Michigan 529 plans are exempt. Also excluded are distributions made due to the beneficiary's death, disability, scholarship, or attendence at one of the U.S. military academies.

The earnings portion of a non-qualified withdrawal may be subject to a partial recapture of any Michigan state income tax deduction previously claimed.

Qualified distributions from Michigan and non-Michigan 529 plans are exempt. Also excluded are distributions made due to the beneficiary's death, disability, scholarship, or attendence at one of the U.S. military academies.

Qualified distributions from Michigan and non-Michigan 529 plans are exempt. Also excluded are distributions made due to the beneficiary's death, disability, scholarship, or attendence at one of the U.S. military academies.

If a withdrawal is taken from an account to pay for qualified disability expenses, the account owner generally does not have to include as income any earnings attributable to that withdrawal for the applicable taxable year if the total withdrawals for that year are less than or equal to the total withdrawals for qualified disability expenses for that year.

Qualified distributions from Minnesota and non-Minnesota 529 plans are exempt.

Any earnings on contributions are not subject to Mississippi state income tax, which means account assets grow free of current Mississippi income tax and are tax-free if withdrawn for qualified disability Expenses.

Qualified distributions from Mississippi and non-Mississippi 529 plans are exempt.

Qualified distributions from Mississippi and non-Mississippi 529 plans are exempt.

If a qualified withdrawal is made from an account, no portion of the distribution is includable in the gross income of the account owner.

Qualified distributions from Missouri and non-Missouri 529 plans are exempt.

Qualified distributions from Montana and non-Montana 529 plans are exempt.

Qualified distributions from Nebraska and non-Nebraska 529 plans are exempt.

If a qualified withdrawal is made from an account, no portion of the distribution may be included in the gross income of the account owner.

Qualified distributions from Nebraska and non-Nebraska 529 plans are exempt.

Qualified distributions from Nebraska and non-Nebraska 529 plans are exempt.

Qualified distributions from Nebraska and non-Nebraska 529 plans are exempt.

Not applicable. Nevada does not have a personal income tax

Not applicable. Nevada does not have a personal income tax.

Not applicable. Nevada does not have a personal income tax.

Not applicable. Nevada does not have a personal income tax.

Not applicable. Nevada does not have a personal income tax.

Not applicable. Nevada does not have a personal income tax.

Not applicable. Nevada does not have a personal income tax.

Not applicable. New Hampshire does not have a personal income tax. Qualified distributions from New Hampshire and non-New Hampshire 529 plans are exempt from New Hampshire interest and dividends tax.

Pursuant to New Hampshire RSA 195-K:4, income and distributions from any qualified ABLE program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the interest and dividends tax pursuant to RSA 77:4-h, provided that distributions from the plan which are subject to federal income tax shall be subject to the interest and dividends tax pursuant to RSA 77 on the accrued income portion of the savings plan distribution.

Pursuant to New Hampshire RSA 195-K:4, income and distributions from any qualified ABLE program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the interest and dividends tax pursuant to RSA 77:4-h, provided that distributions from the plan which are subject to federal income tax shall be subject to the interest and dividends tax pursuant to RSA 77 on the accrued income portion of the savings plan distribution.

Not applicable. New Hampshire does not have a personal income tax. Qualified distributions from New Hampshire and non-New Hampshire 529 plans are exempt from New Hampshire interest and dividends tax.

Qualified distributions from New Jersey and non-New Jersey 529 plans are exempt.

Earnings on contributions made to an account are excluded from gross income, which means the earnings grow deferred from current New Jersey state gross income tax. The earnings portion of a qualified withdrawal to pay for qualified disability eExpenses is not subject to New Jersey state gross income tax.

Qualified distributions from New Jersey and non-New Jersey 529 plans are exempt.

There is no New Mexico state income tax on qualified withdrawals, to the extent such transactions are exempt from U.S. federal income taxation under Section 529A.

Qualified distributions from New Mexico and non-New Mexico 529 plans are exempt.

Qualified distributions from New Mexico and non-New Mexico 529 plans are exempt.

Qualified distributions from New York and non-New York 529 plans (via conformity to the federal tax exclusion) are exempt.

Qualified distributions from New York and non-New York 529 plans (via conformity to the federal tax exclusion) are exempt.

New York follows federal tax treatment of earnings on an ABLE account. Earnings on investments in NY ABLE are federally tax-deferred and tax-free if used for qualified disability expenses.

Qualified distributions from North Carolina and non-North Carolina 529 plans are exempt.

Qualified distributions from North Carolina and non-North Carolina 529 plans are exempt.

If a withdrawal is taken from an Account to pay for qualified disability expenses, the account owner generally does not have to include as income any earnings attributable to that withdrawal for the applicable taxable year if the total withdrawals for that year are less than or equal to the total withdrawals for qualified disability expenses for that year.

Qualified distributions from North Dakota and non-North Dakota 529 plans are exempt.

Qualified distributions from North Dakota and non-North Dakota 529 plans are exempt.

Qualified distributions from Ohio and non-Ohio 529 plans are exempt. Ohio also exempts distributions from a Ohio 529 plan attributable to the beneficiary's death, disability, or receipt of a scholarship.

Qualified distributions from Ohio and non-Ohio 529 plans are exempt. Ohio also exempts distributions from a Ohio 529 plan attributable to the beneficiary's death, disability, or receipt of a scholarship.

If a qualified withdrawal is made from a STABLE Account, no portion of the distribution may be included in the gross income of the beneficiary for purposes of federal and Ohio state income taxes.

Qualified distributions from Oklahoma and non-Oklahoma 529 plans are exempt.

Qualified distributions from Oklahoma and non-Oklahoma 529 plans are exempt.

There is no Oklahoma state income tax on qualified withdrawals, rollovers for program-to-program transfers.

If a qualified withdrawal is made from an ABLE account, no portion of the distribution may be included in the gross income of the beneficiary for purposes of federal and Oregon state income taxes.

Qualified distributions from Oregon and non-Oregon 529 plans are exempt.

If a qualified withdrawal is made from an ABLE account, no portion of the distribution may be included in the gross income of the beneficiary for purposes of federal and Oregon state income taxes.

Qualified distributions from Oregon and non-Oregon 529 plans are exempt.

All states that impose an income tax generally exempt all 529 distributions used for Qualified Higher Education Expenses, including those from Private College 529 Plan.

When withdrawn, earnings are exempt from Pennsylvania income tax if they are used for qualified disability expenses.

Qualified distributions from Pennsylvania and non-Pennsylvania 529 plans are exempt. Accounts in a Pennsylvania 529 plan are also exempt from Pennsylvania inheritance tax.

Qualified distributions from Pennsylvania and non-Pennsylvania 529 plans are exempt. Accounts in a Pennsylvania 529 plan are also exempt from Pennsylvania inheritance tax.

Qualified distributions from Rhode Island and non-Rhode Island 529 plans are exempt.

Qualified distributions from Rhode Island and non-Rhode Island 529 plans are exempt.

For Rhode Island state income tax purposes, annual earnings of an ABLE account shall be exempt from tax, and shall not be included in the Rhode Island income of the account owner. The earnings portion of a withdrawal to pay for qualified disability expenses is not subject to Rhode Island state income tax.

Qualified distributions from South Carolina and non-South Carolina 529 plans are exempt.

Qualified distributions from South Carolina and non-South Carolina 529 plans are exempt.

There is no South Carolina state income tax on qualified withdrawals.

Not applicable. South Dakota does not have a personal income tax.

Not applicable. South Dakota does not have a personal income tax.

All contributions and withdrawals are exempt from state, county and municipal taxes.

Not applicable. Tennessee does not have a personal income tax. Contributions to, and distributions from, Tennessee and non-Tennessee 529 plans are specifically exempt from all Tennessee state, county, and municipal taxes.

Not applicable. Texas does not have a personal income tax.

N/A; Texas does not impose a state income tax on individuals.

Not applicable. Texas does not have a personal income tax.

Not applicable. Texas does not have a personal income tax.

There is no Utah state income tax on Qualified Withdrawals, Rollovers, or Program-to-Program Transfers.

Qualified distributions from Utah and non-Utah 529 plans are exempt.

The State of Vermont does not tax distributions for qualified disability expenses.

Qualified distributions from Vermont and non-Vermont 529 plans are exempt.

If a qualified withdrawal is made from an account, no portion of the withdrawal, including earnings, may be included in the gross income of the account owner.

If a qualified withdrawal is made from an account, no portion of the withdrawal, including earnings, may be included in the gross income of the account owner.

Qualified distributions from Virginia and non-Virginia 529 plans are exempt. Virginia also exempts distributions from a Virginia 529 plan attributable to the beneficiary's death, disability, or receipt of a scholarship.

Qualified distributions from Virginia and non-Virginia 529 plans are exempt. Virginia also exempts distributions from a Virginia 529 plan attributable to the beneficiary's death, disability, or receipt of a scholarship.

Not applicable. Washington does not have a personal income tax.

There is no state income tax on qualified withdrawals or rollovers.

Qualified distributions from West Virginia and non-West Virginia 529 plans are exempt.

Qualified distributions from West Virginia and non-West Virginia 529 plans are exempt.

Qualified distributions from West Virginia and non-West Virginia 529 plans are exempt.

Qualified distributions from West Virginia and non-West Virginia 529 plans are exempt.

There is no West Virginia state income tax on qualified withdrawals to the extent such transactions are exempt from U. S. federal income taxation under Section 529A.

Qualified distributions from Wisconsin and non-Wisconsin 529 plans are exempt. Under Wisconsin law, a beneficiary's right to qualified withdrawals from a Wisconsin 529 plan is not subject to garnishment, attachment, execution, or other process of law.

N/A