529 Plan Recapture Tax on Rollovers
From Bogleheads
The following table lists states currently giving tax deductions on 529 plan contributions and imposing a recapture tax on rollovers of in-state 529 plans to an out of state plan. Expense ratios on indexed portfolios are provided.
Alabama taxpayers must pay state tax on earnings rolled into an Alabama 529 plan. Alabama tax treatment of earnings rolled out of an Alabama 529 plan is unclear. Alabama law exempts qualified distributions from an Alabama 529 plan but does not exempt distributions from a non-Alabama 529 plan. The Alabama 529 Plan offers an indexed stock and an indexed bond portfolio at a 0.60% expense ratio.
Missouri:A rollover that is a not a direct trustee-to-trustee rollover is considered a nonqualified withdrawal for Missouri tax purposes and is subject to recapture tax.
See the highlighted plan Wiki pages for details and links to information.
| State | Recapture Tax on Rollovers | Index Fund ER | Index Manager |
| Arkansas | Yes | 0.85% | Vanguard |
| Colorado | Yes | 0.75% | Vanguard |
| District of Columbia [1] | Yes | 0.50% | Calvert |
| Georgia | Yes | 0.50% to 0.76% | TIAA-CREF |
| Idaho | Yes | 0.75% | Vanguard |
| Illinois | Yes | 0.20% to 0.23% | Vanguard |
| Indiana | Yes | 0.35% to 0.51% | Vanguard |
| Iowa | Yes | 0.52% | Vanguard |
| Montana | Yes | none | none |
| Nebraska | Yes | 0.65% to 0.84% | Vanguard |
| New Mexico | Yes | none | none |
| New York | Yes | 0.49% | Vanguard |
| North Carolina | Yes | 0.40% to 0.52% | Vanguard |
| Oklahoma | Yes | 0.79% to 0.99% | TIAA-CREF |
| Rhode Island [2] | Yes | 0.39% | Vanguard |
| Utah | Yes | 0.22% - 0.34% | Vanguard |
| Virginia | Yes | 0.31% to 0.51% | Vanguard |
Notes
- ↑ The District of Columbia offers only one stock index portfolio.
- ↑ Rhode Island offers only one stock index portfolio.
| College Savings | ||
|---|---|---|
| 529 Plans | 529 Plans • 529 Plans Indexed Options • 529 Plan Recapture Tax on Rollovers • Collegesure 529 Tuition Indexed Programs • 529 Plan Account Transfers | |
| Coverdell Education Savings Accounts | Coverdell Education Savings Accounts (ESAs) • Vanguard Coverdell Education Savings Account | |
| US Savings Bonds | I Savings Bonds • EE Savings Bonds | |
How to Cite
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Please see [url=http://www.bogleheads.org/wiki/529_Plan_Recapture_Tax_on_Rollovers]529 Plan Recapture Tax on Rollovers[/url] on the [url=http://www.bogleheads.org/wiki/Main_Page]Bogleheads Wiki[/url].
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