I currently have about $12k in a Virginia 529 account that I contributed over a few years to get the state tax deduction when we lived there. I've since left the state and am considering rolling to funds over to another 529 account. I know that there shouldn't be any federal tax consequences, but Virginia529's documentation says this:
A Rollover to a non-Virginia Qualified Tuition Program or non-Virginia Qualified ABLE Program will require the Account Owner to add back to his or her Virginia taxable income any amounts previously deducted from the Account Owner’s Virginia taxable income as a result of Invest529 Contributions.
Does this mean that I will have to amend the returns where I took the deductions? Or, will the deductions be reported as income for this year's taxes? I wouldn't have any other income in Virginia that year, so that seems to be a non-issue since it would be below the standard deduction. Does any of this make sense?
Thanks,
David
