- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
While the federal government allows the distribution as a qualified withdrawal to repay student loan debt, the state of NY does not feel the same. NY classifies it as a non-qualified distribution and it is taxable so you don't need to go through the hassle of entering anything since it is fully taxable.
Reference: How to make withdrawals | NY 529 Direct Plan
Distributions to pay K-12 tuition or qualified education loan repayments are considered nonqualified withdrawals for New York State tax purposes and will require the recapture of any tax benefits that have accrued on contributions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎February 29, 2024
5:09 PM