Or. Admin. R. 150-315-0065 - Higher Education Savings (529) and Achieving A Better Life Experience (ABLE) account credit recapture
(1) If
an unqualified withdrawal under ORS
315.653(1) is
made from a 529 or ABLE account, the taxpayer who received tax benefit of the
contribution must forfeit that benefit.
(2) To determine whether a forfeiture is
necessary, the amount of non-benefit contribution must be determined. The
amount of non-benefit contribution is the total of:
(a) Deposits into a 529 or ABLE account for
which no corresponding tax benefit was received and;
(b) Any interest earned in a 529 or ABLE
account.
(3) The amount
of unqualified withdrawal in excess of the non-benefit contribution calculated
in section (2) is subject to recapture.
(4) The amount of the recapture is based on
the tax benefit received on the most recent contribution and must be reported
in the tax year in which the withdrawal took place.
Notes
To view attachments referenced in rule text, click here to view rule.
Statutory/Other Authority: ORS 305.100 & 316.650
Statutes/Other Implemented: ORS 315.650
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