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Plan
State tax treatment of rollovers
Alabama
Inbound rollovers are not subject to Alabama tax. The full amount rolled over can be deducted subject to the $5,000 or $10,000 annual maximum. Outbound rollovers are treated as nonqualified withdrawals.
Arizona follows federal tax-free treatment.
Arkansas follows federal tax-free treatment for rollovers except that outbound rollovers are subject to the recapture of prior state tax deductions. Inbound rollover contributions from another state's plan are deductible in the amount of $7,500 per individual and $15,000 per couple.
Colorado follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
Colorado follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
Colorado follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
District of Columbia
District of Columbia follows federal tax-free treatment except that outbound rollovers within two years of establishing the account are subject to the recapture of prior D.C. tax deductions.
Georgia
Georgia follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
Outbound rollovers by Idaho taxpayers must be included in Idaho taxable income to the extent of contributions made during the 12 months prior to the rollover, effective January 1, 2008.
Illinois follows federal tax-free treatment except that, beginning in 2007, outbound rollovers are subject to the recapture of prior state tax deductions.
Indiana follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax credits.
Indiana follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax credits.
Iowa follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
Kansas follows federal tax-free treatment.
Maryland follows federal tax-free treatment.
Mississippi follows federal tax-free treatment.
Missouri follows federal tax-free treatment for rollovers.
Montana
Montana follows tax-free treatment for rollovers into a Montana 529 plan. Montana tax treatment of rollovers out of a Montana 529 plan is unclear, as Montana law may require that the rollover be treated as a nonqualified withdrawal.
Nebraska follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
Nebraska follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
New Mexico follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
New York follows tax-free treatment for rollovers except that, according to a New York State Dept. of Taxation and Finance interpretation, a rollover out of a New York 529 plan is treated as a nonqualified withdrawal. A direct trustee-to-trustee rollover between two New York 529 accounts is not treated as a nonqualified withdrawal for this purpose.
Ohio follows federal tax-free treatment except that outbound rollovers appear subject to the recapture of prior state tax deductions.
Oklahoma
Oklahoma follows federal tax-free treatment except that outbound rollovers made within 12 months of the date of contribution are subject to the recapture of prior state tax deductions.
CollegeBound Saver (Direct-sold)
Rhode Island
Rhode Island follows federal tax-free treatment except that, in the two taxable years following the year of deduction, outbound rollovers are subject to the recapture of prior state tax deductions.
Future Scholar 529 College Savings Plan (Direct-sold)
South Carolina
South Carolina follows federal tax-free treatment.
Utah
Utah follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions or tax credits.
Virginia
Virginia follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.
SMART529 WV Direct College Savings Plan
West Virginia
West Virginia follows federal tax-free treatment.