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State tax treatment of rollovers

No portion of a rollover or a plan-to-plan transfer is includable in the gross income of the beneficiary for purposes of federal and Alabama state income taxes or is subject to the additional 10% federal tax.

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.

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.

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

There is no Arizona state income tax on rollovers, or program-to-program transfers, to the extent such transactions are exempt from U.S. federal income taxation under Section 529A.

Arizona follows federal tax-free treatment.

Arizona follows federal tax-free treatment.

Arkansas follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

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.

Arkansas follows federal tax-free treatment for rollovers except that outbound rollovers are subject to the recapture of prior state tax deductions. Rollover contributions from another state's plan are deductible in the amount of $7,500 per individual and $15,000 per couple.

An incoming rollover from a Section 529 Plan account to an ABLE account may be subject to California income tax. Qualified withdrawals and outgoing rollovers are not subject to California income tax.

California follows federal tax-free treatment.

Colorado follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

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.

Colorado follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Connecticut follows federal tax-free treatment.

Connecticut follows federal tax-free treatment.

Connecticut follows federal tax-free treatment.

Delaware follows federal tax-free treatment.

The account owner will not be required to include any amount in computing D.C. taxable income as a result of a transfer of amounts from an account owner to the account of a different qualifying account owner, provided that in each case the new account owner is an eligible individual and a member of the family of the replaced account owner and the transfers occur either directly or by deposit to the new account in DC ABLE within 60 days of the withdrawal from the prior account.

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.

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

Florida does not have a personal income tax. Note: program materials indicate that Florida Prepaid College Plans do not accept rollovers from other 529 plans.

Florida does not have a personal income tax.

There is no Georgia state income tax on rollovers, or program-to-program transfers, to the extent such transactions are exempt from U.S. federal income taxation under Section 529A.

Georgia follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Hawaii follows federal tax-free treatment.

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.

Illinois follows federal tax-free treatment except that, beginning in 2007, outbound rollovers are subject to the recapture of prior state tax deductions.

Illinois follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Illinois follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

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.

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 of rollovers, though tax-free rollovers are restricted to once per 12-month period.

Iowa follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

Iowa follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

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 of rollovers, though tax-free rollovers are restricted to once per 12-month period.

Kansas follows federal tax-free treatment.

Kansas follows federal tax-free treatment.

Kansas follows federal tax-free treatment.

Kentucky follows federal tax-free treatment.

Kentucky follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period.

Louisiana follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period.

Louisiana follows federal tax-free treatment.

Maine follows federal tax-free treatment.

Maine follows federal tax-free treatment.

Maryland follows federal tax-free treatment.

Maryland follows federal tax-free treatment.

No portion of a rollover or a program-to-program transfer is includable in the gross income of the beneficiary for purposes of federal and Maryland state income taxes, or is subject to the additional 10% federal tax imposed on the earnings portion of certain non-qualified withdrawals.

Massachusetts follows federal tax-free treatment.

Massachusetts follows federal tax-free treatment.

Not applicable. Because U.Plan is not a 529 plan, rollovers into U.Plan are not eligible for federal or state tax-free treatment.

Michigan follows federal tax-free treatment.

Michigan follows federal tax-free treatment.

Michigan follows federal tax-free treatment.

Michigan follows federal tax-free treatment.

Minnesota follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

Minnesota follows federal tax-free treatment.

Mississippi follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

Mississippi follows federal tax-free treatment.

Mississippi follows federal tax-free treatment.

Missouri follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

Missouri follows federal tax-free treatment for rollovers.

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, though tax-free rollovers are restricted to once per 12-month period.

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.

Nebraska follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

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

New Hampshire does not have a state income tax.

New Hampshire does not have a state income tax.

New Jersey follows federal tax-free treatment.

New Jersey follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

New Jersey follows federal tax-free treatment.

New Mexico follows federal income tax laws with respect to Distributions, Rollovers, and Program-to-Program Transfers.

Rollovers from a non-New Mexico-approved Section 529 college savings plan to the NM 529 plans are deductible for NM state tax purposes. 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.

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.

New York follows federal tax-free treatment of rollovers, though tax-free rollovers are restricted to once per 12-month period.

North Carolina follows federal tax-free treatment.

North Carolina follows federal tax-free treatment.

North Carolina follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period.

North Dakota follows federal tax-free treatment.

North Dakota follows federal tax-free treatment.

Ohio follows federal tax-free treatment except that outbound rollovers appear subject to the recapture of prior state tax deductions.

Ohio follows federal tax-free treatment except that outbound rollovers appear subject to the recapture of prior state tax deductions.

Ohio follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period.

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.

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.

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

No portion of a rollover or a program-to-program transfer may be included in the gross income of the beneficiary for purposes of federal and Oregon state income taxes, or is subject to the additional 10% federal tax imposed on the earnings portion of certain non-qualified withdrawals.

Oregon follows federal tax-free treatment.

No portion of a rollover or a program-to-program transfer may be included in the gross income of the beneficiary for purposes of federal and Oregon state income taxes, or is subject to the additional 10% federal tax imposed on the earnings portion of certain non-qualified withdrawals.

Oregon follows federal tax-free treatment.

When withdrawn, earnings are exempt from Pennsylvania income tax if they are used for rollovers into another state's ABLE plan or transfers to another PA ABLE account.

Pennsylvania follows federal tax-free treatment.

Pennsylvania follows federal tax-free treatment.

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.

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.

Rhode Island follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period

South Carolina follows federal tax-free treatment.

South Carolina follows federal tax-free treatment.

There is no South Carolina state income tax on Rollovers.

TN follows federal tax-free treatment, though tax-free rollovers are restricted to once per 12-month period

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

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

Utah follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions or tax credits.

Vermont follows federal tax-free treatment.

Vermont follows federal tax-free treatment.

Virginia accepts a rollover or transfer from another ABLE program to ABLEAmerica. If rolling over or transferring funds from another ABLE Program, the ABLEAmerica beneficiary must be the same beneficiary or an eligible individual who is a memberof the family of the previous beneficiary. A rollover from another ABLE Program for the same beneficiary can only be made once every 12 months. Virginia will accept a rollover or transfer from a qualified tuition program to ABLEAmerica.

No portion of a rollover may be included in the gross income of the account owner or is subject to the additional 10% federal tax imposed on the earnings portion of certain non-qualified withdrawals.

Virginia follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

Virginia follows federal tax-free treatment except that outbound rollovers are subject to the recapture of prior state tax deductions.

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

West Virginia follows federal tax-free treatment.

West Virginia follows federal tax-free treatment.

West Virginia follows federal tax-free treatment.

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

Wisconsin follows federal tax-free treatment.

Wisconsin follows federal tax-free treatment.

N/A