Deducting Rollover 529 Contributions

[TimKr33]

We are in the process of rolling over an out of state 529 plan to an in-state South Carolina Future Scholar 529 plan. Would the entire amount we are rolling over (about $6k) be considered a contribution that we can deduct? 

[KrisD15 · Accepted solution]

Yes, HOWEVER

a roll-over is only allowed once every 12 months per student/beneficiary, so if anyone else has an account for that same person, their roll-overs would count towards the limit.

Also, if you received any tax benefit for the original contribution(s), that tax benefit would need to be re-payed, or "recaptured" for the state that gave the original credit. 

(A COVERDELL account would NOT be treated the same as a 529 account) 

 South Carolina's 529 link