529 tax benefits by state

Data is as of June 2020. The deductibility of 529 plan contributions varies by state and is subject to legislative change without notice. You should consult your tax advisor regarding your specific tax situation.

None of the State of Rhode Island, its agencies, Invesco Distributors, Inc., Ascensus College Savings Recordkeeping Services, LLC, nor any of their applicable affiliates, provide legal or tax advice. This information is provided for general educational purposes only and is not to be considered legal or tax advice. Investors should consult with their legal or tax advisors for personalized assistance, including information regarding any specific state law requirements.

State tax deductions may be subject to recapture on non-qualified withdrawals and/or outbound rollovers in subsequent years. Review the applicable plan disclosure statements. Married couples may need to make their own contributions and/or to their own separate accounts in certain states. Contributions may be reduced by qualified withdrawals during the year for purposes of determining the amount that may be deducted in certain states. Contributions by a spouse may only be deductible if a joint return is filed in certain states. Spouses filing jointly may each need to have income generated up to the amount of the contribution made to claim the maximum (per beneficiary) deduction in certain states. Contributions to an account established after a beneficiary reaches a certain age may not be eligible for a deduction or credit. Contributions made by the account owner, a non-account owner who files a joint return with the account owner, or another non-account owner may be treated differently among the states regarding eligibility for deductions or credits and whom can apply it to their tax return. The deductibility of 529 plan contributions varies by state and is subject to legislative change. You should consult your tax advisor regarding your specific tax situation.

Rhode Island taxpayers who are account owners and contribute to a CollegeBound 529 account are eligible for a deduction in computing state income tax for contributions made to CollegeBound 529 of up to $1,000 for married couples filing jointly and $500 for individual filers. Subject to certain conditions and requirements, contributions in excess of the annual limit can be carried forward and deducted in future years. If a participant makes a non-qualified withdrawal or certain transfers/rollovers to another state's program, the amount of the deduction may be "recaptured" and included in the account owner's Rhode Island income. Check with your tax advisor to see how 529 plans are treated for income tax purposes.