Contributions to the CollegeCounts 529 Plan are deductible on a state of Alabama income tax return up to $5,000 per Alabama taxpayer or $10,000 for married Alabama taxpayers filing jointly if both contribute.
Yes, once the withdrawal is made, it would be taxable on your Alabama income tax return.
The rollover is exempt from Alabama income tax.
Yes, the amount withdrawn is added back to the contributing taxpayer’s return, plus a 10 percent penalty.
No, the money is not taxable as long as the money is used to pay for higher education expenses.
The postmark date on your contribution will be accepted as the date of the contribution, as long as it is on or before December 31.  The contribution does not have to be received by the plan on or before December 31.
