No, this is not a bug. Connecticut Higher Education Trust (CHET) is a type of 529 plan. Contributions to a 529 plan are not deductible on your federal return, but the account can grow tax free.
CHET contributions are deductible on the Connecticut tax return and there are some estate tax benefits as well. Check the link below and expand the Tax Advantages section to see details of the tax benefits of this plan.
Click here.
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