Its goal is to help families save for college, the State of Connecticut offers the Connecticut Higher Education Trust (CHET), Connecticut’s 529 College Savings Plan. Connecticut families can take an income tax deduction (up to $5,000 for single filers, $10,000 for joint filers) on contributions to CHET accounts.

Can I write off 529 contributions?

California does not allow families to deduct their contributions to qualifying 529 plans. Florida does not have a state income tax, so there is no need for a deduction.

Where are 529 contributions reported?

If you’ve simply been contributing to an existing 529 account you may not have to report anything on your federal income tax return. Unlike an IRA, contributions to a 529 plan are not deductible and therefore do not have to be reported on federal income tax returns.

What is the best 529 plan for CT residents?

We recommend that Connecticut residents use the Connecticut Higher Education Trust (CHET) 529 plan due to the tax benefits, low fees, and plan investment options. We recommend that out-of-state residents utilize other plans.

How much can you contribute to a 529 plan in Connecticut?

Connecticut offers a state tax deduction for contributions to a Connecticut 529 plan of up to $5,000 for single filers and $10,000 for married filing jointly tax filers. You can deduct excess contributions for 5 years (i.e. you can superfund your 529 plan).

Who is the 529 college savings advisor for Connecticut?

The Connecticut Higher Education Trust (CHET) 529 College Savings Advisor Program is only open to Connecticut state residents through a financial advisor. Your advisor can help you develop a personalized investment strategy based on your unique financial circumstances and goals.

Can You rollover a 529 into a non-Connecticut 529 plan?

Rollovers into the state plan are allowed, but not eligible for the state tax deduction. Outbound rollovers follow federal guidelines. Qualified distributions from Connecticut and non-Connecticut 529 plans are exempt. Connecticut does conform with Federal law in regards to using a 529 plan for K-12 tuition.

Is the Chet 529 plan subject to federal tax?

Earnings in a 529 plan are not subject to state or federal taxes, and Connecticut’s plan is no different. The withdrawals from a CHET 529 plan are tax-free at both the federal and state level, as long as they’re used for qualified higher education expenses.