Compare 529 Plans by Features

Plan

State tax recapture provisions

If the Designated Beneficiary stays the same, the transfer will be treated as an income tax-free Qualified Rollover Distribution as long as the transfer does not occur within 12 months from the date of a previous rollover to another 529 qualified tuition program for the Designated Beneficiary.

If the Designated Beneficiary stays the same, the transfer will be treated as an income tax-free Qualified Rollover Distribution as long as the transfer does not occur within 12 months from the date of a previous rollover to another 529 qualified tuition program for the Designated Beneficiary.

N/A

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

AZ ABLE

Arizona

None

The principal portion of nonqualified withdrawals from this plan are included in Arizona taxable income to the extent of prior Arizona tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability, withdrawals made on account of the beneficiary's receipt of a scholarship, or rollovers.

The principal portion of nonqualified withdrawals from this plan are included in Arizona taxable income to the extent of prior Arizona tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability, withdrawals made on account of the beneficiary's receipt of a scholarship, or rollovers.

AR ABLE

Arkansas

None

Arkansas state tax deductions will be subject to recapture in subsequent years if Non-Qualified Withdrawals are made or the Arkansas taxpayer rolls the Account over to a tax deferred tuition savings program established by another state.

Arkansas state tax deductions will be subject to recapture in subsequent years if Non-Qualified Withdrawals are made or the Arkansas taxpayer rolls the Account over to a tax deferred tuition savings program established by another state.

CalABLE

California

None

N/A

None

The portion of the withdrawal attributable to contributions previously deducted for Colorado income tax purposes is subject to recapture and must be added to the taxable income of the taxpayer who took the deductions, in the year in which the withdrawal is made. The recapture provision applies to a rollover to a non-Colorado Section 529 Plan or ABLE account.

The principal portion of rollovers and nonqualified withdrawals from this plan are included in Colorado taxable income to the extent of prior Colorado tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship.

The principal portion of rollovers and nonqualified withdrawals from this plan are included in Colorado taxable income to the extent of prior Colorado tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship.

The principal portion of rollovers and nonqualified withdrawals from this plan are included in Colorado taxable income to the extent of prior Colorado tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship.

ABLE CT

Connecticut

None

DEPENDABLE

Delaware

None, .

DC ABLE

District of Columbia

None

DC College Savings Plan

District of Columbia

The principal portion of nonqualified withdrawals from this plan, and rollovers within two years of account opening, are included in District of Columbia taxable income to the extent of prior District of Columbia tax deductions. Nonqualified withdrawals for this purpose do not include withdrawals made as the result of the beneficiary's death or disability and withdrawals made on account of the beneficiary's receipt of a scholarship.

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

None

Any portion of a rollover to another state’s qualified tuition program, a Taxable Withdrawal, or a Non-Qualified Withdrawal that is attributable to contributions previously deducted for Georgia income tax purposes will be taxed to the Account Owner in the year of the withdrawal or rollover.

The entire amount of non-qualified distributions must be included in Idaho taxable income. Outbound rollovers by Idaho taxpayers must be included in Idaho taxable income to the extent of amounts deducted on the Idaho return for the current year and for the prior year, effective January 1, 2008.

Effective January 1, 2007, rollovers from this plan to an out-of-state program are included in Illinois taxable income to the extent of prior Illinois deductions. Effective January 1, 2009, nonqualified distributions from this plan are included in Illinois taxable income to the extent of prior Illinois deductions.

Effective January 1, 2007, rollovers from this plan to an out-of-state program are included in Illinois taxable income to the extent of prior Illinois deductions. Effective January 1, 2009, nonqualified distributions from this plan are included in Illinois taxable income to the extent of prior Illinois deductions.

Rollovers from this plan to an out-of-state program are included in Illinois taxable income to the extent of prior Illinois deductions. Nonqualified distributions from this plan are included in Illinois taxable income to the extent of prior Illinois deductions.

None

The account owner (not the contributor) must repay all or part of the state income tax credit claimed by contributors in prior taxable years in a taxable year of the Recapture Distribution. A Recapture Distribution is a: non-qualified distribution (other than if the distribution is because of the death or disability of the beneficiary, or if the beneficiary received a scholarship that paid for all or part of the qualified expenses of the beneficiary (to the extent that the withdrawal or distribution does not exceed the amount of the scholarship), or a refunded distribution); distribution used to pay K-12 tuition for a school outside of Indiana; effective January 1, 2020, distribution used to make education loan repayments; rollover distribution; or termination of an account within twelve months after the account was opened.

An account owner must pay with the Indiana tax return a tax equal to the 20 percent of a nonqualified withdrawal from this plan, to the extent of Indiana tax credits previously claimed. Nonqualified withdrawals for this purpose include rollovers but do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship. Recapture will apply to accounts terminated within 12 months from account opening date.

An account owner must pay with the Indiana tax return a tax equal to the lesser of 20 percent of a nonqualified withdrawal from this plan, or the excess of (a) the total amount of all Indiana state income tax credits claimed by any contributor to the account for all taxable years beginning on or after January 1, 2007 over (b) the total amount of any repayments made for all taxable years beginning on or after January 1, 2008. Nonqualified withdrawals for this purpose include rollovers, distributions for K-12 tuition for a school outside of Indiana, education loan repayments (beginning 1/1/2020). Nonqualified withdrawals do not include withdrawals made as the result of the beneficiary's death or disability or withdrawals made on account of the beneficiary's receipt of a scholarship. Recapture will apply to any account terminated within 12 months from account opening date.

You can perform a federally tax-free rollover from College Savings Iowa to a non-Iowa 529 plan for the same Beneficiary once every 12 months. However, for Iowa income tax purposes, a rollover to a non-Iowa 529 plan will be treated as a nonqualified withdrawal and taxed as income to the extent previously deducted as a contribution to College Savings Iowa.

None

For Iowa income tax purposes, a rollover to a non-Iowa 529 plan (or an non-Iowa ABLE Plan) will be treated as a Non-Qualified Withdrawal and taxed as income to the extent previously deducted as a contribution to the IAdvisor 529 Plan.

The principal portion of nonqualified withdrawals from this plan are included in Kansas taxable income to the extent of prior Kansas tax deductions. Rollovers are not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in Kansas taxable income to the extent of prior Kansas tax deductions. Rollovers are not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in Kansas taxable income to the extent of prior Kansas tax deductions. Rollovers are not subject to recapture.

KY Saves 529

Kentucky

N/A

None

LA ABLE

Louisiana

Earnings credited to a LA ABLE Account that are subsequently refunded by LATTA are taxable for Louisiana state income tax purposes.

The principal portion of nonqualified withdrawals from this plan are included in Louisiana taxable income to the extent of prior Louisiana tax deductions. Rollovers are not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in Maryland taxable income to the extent of prior Maryland tax deductions. Rollovers are not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in Maryland taxable income to the extent of prior Maryland tax deductions. Rollovers are not subject to recapture.

None

None

The principal portion of nonqualified withdrawals from this plan are included in Massachusetts taxable income to the extent of prior Massachusetts tax deductions.

U.Plan

Massachusetts

The principal portion of nonqualified withdrawals from this plan are included in Massachusetts taxable income to the extent of prior Massachusetts tax deductions.

The principal portion of nonqualified withdrawals from this plan are included in Michigan taxable income to the extent of prior Michigan tax deductions. Qualified rollovers are not subject to recapture.

MiABLE

Michigan

None

The principal portion of nonqualified withdrawals from this plan are included in Michigan taxable income to the extent of prior Michigan tax deductions. Qualified rollovers are not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in Michigan taxable income to the extent of prior Michigan tax deductions. Qualified rollovers are not subject to recapture.

None

Qualified Withdrawals and outgoing rollovers that are free from federal income tax are also free from Minnesota income tax, with the exception of withdrawals used for elementary and secondary school tuition, which are subject to Minnesota income tax.

Mississippi ABLE

Mississippi

None

The principal portion of nonqualified withdrawals from this plan are included in Mississippi taxable income to the extent of prior Mississippi tax deductions. A rollover to another 529 plan is not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in Mississippi taxable income to the extent of prior Mississippi tax deductions. A rollover to another 529 plan is not subject to recapture.

MO ABLE

Missouri

None

Rollovers to another state’s qualified 529 plan are not taxable for Missouri income tax purposes and are not subject to recapture on the Missouri income tax return.

Montana imposes a recapture tax on Non-Qualified Montana Distributions and distributions from an Account that was opened less than three years before the date of the distribution.

Nebraska state tax deductions are subject to recapture if the account owner cancels a Participation Agreement, makes a partial or complete Nebraska Non-Qualified Withdrawal or rolls assets to an out-of-state 529 qualified tuition program or ABLE program.

Nebraska state law currently provides for the partial recapture of the Nebraska state income tax deduction when a non-qualified withdrawal is made. Additionally, to the extent that a distribution constitutes a non-qualified withdrawal, the Nebraska Department of Revenue will subject the distribution to partial recapture of the Nebraska state income tax deduction claimed in prior years. In general, a contributor who claimed a Nebraska state income tax deduction in prior years must increase his or her Nebraska taxable income by the amount of the non-qualified withdrawal, but only to the extent previously deducted.

Nebraska state tax deductions are subject to recapture if the account owner cancels a Participation Agreement, makes a partial or complete Nebraska Non-Qualified Withdrawal or rolls assets to an out-of-state 529 qualified tuition program or ABLE program.

Nebraska state tax deductions are subject to recapture if the account owner cancels a Participation Agreement, makes a partial or complete Nebraska Non-Qualified Withdrawal or rolls assets to an out-of-state 529 qualified tuition program or ABLE program.

Nebraska state tax deductions are subject to recapture if the account owner cancels a Participation Agreement, makes a partial or complete Nebraska Non-Qualified Withdrawal or rolls assets to an out-of-state 529 qualified tuition program or ABLE program.

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

STABLE NH

New Hampshire

N/A

The NH ABLE Plan

New Hampshire

N/A

NJ ABLE

New Jersey

None

ABLE New Mexico

New Mexico

N/A

Scholar's Edge

New Mexico

In certain circumstances, the amounts deducted may be recaptured in subsequent years. For example, amounts previously deducted for New Mexico income tax purposes may be recaptured if they are distributed from the Plan to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico or to another Qualified Tuition Program not offered by the State of New Mexico.

In certain circumstances, the amounts deducted may be recaptured in subsequent years. For example, amounts previously deducted for New Mexico income tax purposes may be recaptured if they are distributed from the Plan to a Qualified ABLE program, including the ABLE program offered in the State of New Mexico or to another Qualified Tuition Program not offered by the State of New Mexico.

The Program has received a letter from the DTF advising that all Rollover Distributions from an Account to an account in a 529 plan outside of the Program that occur on or after January 1, 2003, will be treated as New York Nonqualified Withdrawals for New York State tax purposes. This tax treatment applies without regard to whether the Rollover Distribution results in income for federal tax purposes. This means that any portion of the Rollover Distribution that is earnings or for which a previous income deduction was taken will be included in your New York State gross income for that tax year and will be subject to recapture of any previously taken New York State income deductions.

The Program has received a letter from the DTF advising that all Rollover Distributions from an Account to an account in a 529 plan outside of the Program that occur on or after January 1, 2003, will be treated as New York Nonqualified Withdrawals for New York State tax purposes. This tax treatment applies without regard to whether the Rollover Distribution results in income for federal tax purposes. This means that any portion of the Rollover Distribution that is earnings or for which a previous income deduction was taken will be included in your New York State gross income for that tax year and will be subject to recapture of any previously taken New York State income deductions.

NY ABLE

New York

None

NC 529 Plan

North Carolina

N/A

NC ABLE

North Carolina

None

Any rollover withdrawal to another state's 529 Plan is subject to recapture of any State of Ohio tax deductions claimed in prior years.

Any rollover withdrawal to another state's 529 Plan is subject to recapture of any State of Ohio tax deductions claimed in prior years.

Oklahoma 529

Oklahoma

Non-Qualified Withdrawals and rollovers from an Account to an account in another state’s 529 Plan may cause the otherwise applicable deductions for contributions to be limited or recaptured. If such a withdrawal or rollover is made in the same year in which a contribution is made or during the five-year carryforward period, the taxpayer must reduce the tax deduction otherwise available for the contribution or carryforward by the amount of the withdrawal or rollover. Taxpayers who take a rollover to another state’s 529 Plan with respect to a contribution, which for an Oklahoma deduction was taken, within one year of the date of the contribution must include the amount of such rollover in their adjusted gross income in the taxable year of the rollover.

Non-Qualified Withdrawals and rollovers from an Account to an account in another state’s 529 Plan may cause the otherwise applicable deductions for contributions to be limited or recaptured. If such a withdrawal or rollover is made in the same year in which a contribution is made or during the five-year carryforward period, the taxpayer must reduce the tax deduction otherwise available for the contribution or carryforward by the amount of the withdrawal or rollover. Taxpayers who take a rollover to another state’s 529 Plan with respect to a contribution, which for an Oklahoma deduction was taken, within one year of the date of the contribution must include the amount of such rollover in their adjusted gross income in the taxable year of the rollover.

None

None

The principal portion of nonqualified withdrawals from this plan are included in Oregon taxable income to the extent of prior Oregon tax deductions. Rollovers are not subject to recapture.Rollovers are not subject to recapture. K-12 distributions will be subject to state tax recapture if a deduction is claimed. Tax deductions received on K-12 withdrawals will be calculated into the amount owed the state for the current tax year. Also, any earnings tied to the K-12 withdrawal will count also as state taxable income.

The principal portion of nonqualified withdrawals from this plan are included in Oregon taxable income to the extent of prior Oregon tax deductions. Rollovers are not subject to recapture. K-12 distributions will be subject to state tax recapture if a deduction is claimed. Tax deductions received on K-12 withdrawals will be calculated into the amount owed the state for the current tax year. Also, any earnings tied to the K-12 withdrawal will count also as state taxable income.

PA ABLE

Pennsylvania

None

Nonqualified distributions from any 529 plan are included by Pennsylvania taxpayers in Pennsylvania taxable income to the extent they are not a recovery of nondeductible contributions, following rules set forth in PIT Bulletin 2006-04. Rollovers are not subject to Pennsylvania tax.

Nonqualified distributions from any 529 plan are included by Pennsylvania taxpayers in Pennsylvania taxable income to the extent they are not a recovery of nondeductible contributions, following rules set forth in PIT Bulletin 2006-04. Rollovers are not subject to Pennsylvania tax.

Rhode Island requires the “recapture” of certain deductions in computing Rhode Island tax if you take a Non-Qualified Distribution or a Rollover Distribution into another state’s Qualified Tuition Program.

Rhode Island requires the “recapture” of certain deductions in computing Rhode Island tax if you take a Non-Qualified Distribution or a Rollover Distribution into another state’s Qualified Tuition Program.

RI's ABLE

Rhode Island

None

The principal portion of nonqualified withdrawals from this plan are included in South Carolina taxable income to the extent of prior South Carolina tax deductions. Rollovers apparently are not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in South Carolina taxable income to the extent of prior South Carolina tax deductions. Rollovers apparently are not subject to recapture.

ABLE TN

Tennessee

None

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

None

my529

Utah

If a Utah taxpayer rolls over funds to another 529 plan, and they have claimed a my529 Utah tax credit or deduction, there is a tax consequence. They must add back the amount of the rollover as income on their Utah state income tax form for the taxable year of the rollover—to the extent it was deducted or used in calculating the tax credit on their current or a previously filed Utah tax return.

None

Nonqualified withdrawals from this plan, is defined for the purposes of the tax credit, as all withdrawals except used exclusively for costs at an accredited institution, apprenticeship programs or when the beneficiary has died or has become disabled, are subject to recapture, to the extent of Vermont tax credits previously claimed. Outbound rollovers are not subject to recapture.

ABLEAmerica

Virginia

Any deduction is subject to recapture in the year a withdrawal or refund is made for any reason other than: (1) to pay qualified disability expenses or (2) due to the beneficiary's death or disability.

ABLEnow

Virginia

None

If an Account is cancelled for a reason other than the student’s death, Disability, receipt of a scholarship (including attendance at a U.S. military academy), or Rollover to another Virginia529 account, any amount of the refund previously deducted from the Account Owner’s Virginia taxable income as a result of Contributions to the cancelled Invest529 Account must be added back to the Account Owner’s Virginia taxable income in the year the refund is received, in addition to any federal tax consequences.

Invest529

Virginia

If an Account is cancelled for a reason other than the student's death, Disability, receipt of a scholarship (including attendance at a U.S. military academy), or Rollover to another Virginia529 account, any amount of the refund previously deducted from the Account Owner's Virginia taxable income as a result of Contributions to the cancelled Invest529 Account must be added back to the Account Owner's Virginia taxable income in the year the refund is received, in addition to any federal tax consequences.

The principal portion of nonqualified withdrawals from this plan are included in West Virginia taxable income to the extent of prior West Virginia tax deductions. Rollovers apparently are not subject to recapture.

SMART529 Select

West Virginia

The principal portion of nonqualified withdrawals from this plan are included in West Virginia taxable income to the extent of prior West Virginia tax deductions. Rollovers apparently are not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in West Virginia taxable income to the extent of prior West Virginia tax deductions. Rollovers apparently are not subject to recapture.

The principal portion of nonqualified withdrawals from this plan are included in West Virginia taxable income to the extent of prior West Virginia tax deductions. Rollovers apparently are not subject to recapture.

WV ABLE

West Virginia

None

Edvest 529

Wisconsin

Non-qualified withdrawals & rollovers to other 529 plans must be added back to Wisconsin taxable income unless eligible for the federal non-qualified withdrawal penalty waiver: death or disability of the beneficiary or withdrawals equal to the amount of a scholarship award in such period of such award. Withdrawals taken within 365 days of a contribution must be added back to WI taxable income if previously deducted and the account balance was less than the withdrawal amount prior to the contribution.

Non-qualified withdrawals & rollovers to other 529 plans must be added back to Wisconsin taxable income unless eligible for the federal non-qualified withdrawal penalty waiver: death or disability of the beneficiary or withdrawals equal to the amount of a scholarship award in such period of such award. Withdrawals taken within 365 days of a contribution must be added back to WI taxable income if previously deducted and the account balance was less than the withdrawal amount prior to the contribution.

WY ABLE

Wyoming

N/A