529 plans
I understand that any withdrawals from a 529 plan are tax-free as long as within guidelines of what it is used for.
However, would any one know if the withdrawals are tax-free in New Jersey from 529 plans, used within the guidelines?
any help?
Doug
Permalink Submitted by Alan Spross on Mon, 2008-11-03 20:08
Doug,
Per the attached, it appears that qualified distributions are tax free in NJ. However, if NJ offers a tax deduction for contributions to it’s own plan and the plan is then transferred to another state plan, there may be a recapture provision. This is something to look into if there was a state deduction for the contribution.
http://www.nj.gov/treasury/taxation/index.html?sect529.htm~mainFrame