Client always lived in NYS but financial advisor had him setup a Wisconsin 529 plan. That plan ran for many years and accumulated $100,000. In 2021 he rolled all the funds into a NYS 529 plan. My question is, "is the allowable $10,000 limit allowed to be deducted on his 2021 NYS tax return from the out of state 529 plan rollover?
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Last edited by BOB W; 05-13-2024, 01:34 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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See if TSB-A-05(7)I and the conclusion for issue 1 answers your question. -
""is the allowable $10,000 limit allowed to be deducted on his 2021 NYS tax return from the out of state 529 plan rollover?"
Yes."You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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NYS served a notice of disallowance of the $6,200 claimed on the '21 tax return and only gave the $400 that was paid after the rollover was completed in November '21. They disallowed the $5,800 claimed on the return and billed for the $5,800 shortage. Although I found out that the rollover qualifies for new contribution to a NYS 529 Plan I could not find any specific wording with NYS readings. Both of your replies allowed me to go forward with my reply to NYS. Instead of a $6,200 original deduction I am requesting that figure to be $10,000. They will probably require an amended return but I'm giving it a try.This post is for discussion purposes only and should be verified with other sources before actual use.
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