Rollover from out of state college 529 savings plan to Oregon college savings plan tax deductible?

Forum|Forum|7 years ago
June 1, 2019
2 replies
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Trying to determine if I will get tax deductible from rollover the funds from Texas College Savings Plan to Oregon College Savings Plan. Texas has no state income tax so I was unable to get tax deductible from my contributions in the past. I relocated to Oregon this year. I would assume I can rollover then claim up to individual amount this year, next year and so forth.

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Carl11_2

Employee

A transfer of 529 monies from one plan to another plan, regardless of being across state lines, changes nothing. It's "as if" you did nothing. You don't get credit for a rollover, and you don't pay taxes on what you have already paid taxes on in the past.
OR will not tax you on that money either, because that money was not earned in OR.

Hal_Al

Employee

There is no federal deduction for rollovers or even contributions to a 529 plan.

Oregon does allow a deduction on the state return for a contribution to the state 529. Oregon law is unclear as to whether rollovers into the plan qualify for the deduction. Since you are rolling over from a plan where you did not previously take a state deduction, I would claim a deduction for the rollover.

Reference: https://www.oregoncollegesavings.com/help/faq/

Contributions to an Oregon 529 plan of up to $2,310 (for 2016) by an individual, and up to $4,620 by a married couple filing jointly, are deductible in computing Oregon taxable income, with a four-year carry forward of excess contributions. The limits are adjusted each year for inflation.