Personal Finance (Not Investing) • 529 Rollover - tax benefit ?

Usually transfers don’t get the tax break, otherwise people could get double or triple tax deduction. Plus would get the tax break on earnings too.

Which is also why some states recapture any previously-claimed state tax benefits on rollovers out of the state plan.

I see several states that allow deductions on "rollover contributions" in this list https://www.savingforcollege.com/compar ... _type_id=1, and South Carolina apparently does not recapture when rolling it back out and has no deduction cap, so in SC could you just keep rolling it in and out and taking a huge state deduction every year?! (or at least every other year to avoid breaking the once per 12 month rule)

Statistics: Posted by bongo — Sun Nov 10, 2024 1:31 am — Replies 9 — Views 499

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