No. Often, state income tax benefits are provided to a state's residents who invest in their state's 529 college savings plan. These benefits could take the form of a state income tax deduction for contributions, tax-free treatment of qualified withdrawals, or a waiver of brokers' fees.
You should look to the tax laws of your own state to determine the income tax treatment of deductions and withdrawals from a college savings plan. In general, you should expect that you won't be required to pay income taxes to another state simply because you opened an account in that state's 529 plan. You'll probably be taxed in your state of residency on the earnings in your 529 plan (no matter where situated) unless your state grants a specific exemption.
Note: Investors should consider the investment objectives, risks, charges, and expenses associated with 529 plans before investing. More information about 529 plans is available in each issuer's official statement, which should be read carefully before investing. Also, before investing, consider whether your state offers a 529 plan that provides residents with favorable state tax benefits.
Please be advised that this materials is not intended as legal or tax advice. Accordingly, any tax information provided in this material is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transactions(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent advisor.
If you are investing in a 529 plan outside of your state of residence, you may lose available state tax benefits. Make sure you understand your state tax laws to get the most from your plan.
529 plans are subject to enrollment, maintenance, administration/management fees and expenses. 529 plans are subject to fluctuation in value and market rise, including loss of principal.
Investors should consider the investment objectives, risks, charges, and expenses of 529 plans carefully before purchasing. More information about 529 plans can be found in the issuer's official statement. Please read the official statement carefully before investing.
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GE 52229 (10/2016)