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No the 529 isn't eligible in CA with possible penalties. The federal allows the 529 for high school.
Using 529 Savings Plans for Private School Tuition - Saving for College states:
Although California residents can access the same federal tax benefits of using a 529 for high school, their state tax will be adversely affected. California considers 529 withdrawals for secondary school tuition a non-qualified distribution and even imposes a penalty.
Can you please provide details on how penalties are calculated, to both contributions and earnings in the state of CA if a 529 is used for private high school tuition.
Can you please provide details on how penalties are calculated, to both contributions and earnings in the state of CA if a 529 is used for private high school tuition.
From Frequently Asked Questions - ScholarShare 529:
The earnings portion of a non-qualified withdrawal is subject to federal income taxation, and an additional 10% federal tax. For California taxpayers, the earnings portion of a non-qualified withdrawal may also be subject to California income tax and an additional 2.5% tax. See the Plan Description for details.
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