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  • When rolling over an out of state 529 plan to an Alabama qualifying plan, is the roll over into the Alabama qualifying plan (both the contributions and earnings portion) exempt from any current year Alabama income tax?

When rolling over an out of state 529 plan to an Alabama qualifying plan, is the roll over into the Alabama qualifying plan (both the contributions and earnings portion) exempt from any current year Alabama income tax?

The rollover is exempt from Alabama income tax.

Related FAQs in 529 Savings Plan, Income Tax

The postmark date will be accepted as the date of the contribution, as long as it is on or before December 31st. The contribution does not have to be received by the plan on or before December 31st.

Yes, once the withdrawal is made, it would be taxable on your Alabama income tax return.

No, the money is not taxable as long as the money is used to pay for higher education expenses.

No deduction would be allowed on your Alabama income tax return, and the income would be reported once it is withdrawn or distributed from that other state’s plan.