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



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



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