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  • 1.  nys 529 plan

    Silver Most Valuable Member
    Posted 08-10-2021 03:04 PM
    ​I have a client that has a 529 NY plan for his grandchildren.
    He has made yearly contributions, but never told me about the contribution so I never took a deduction.
    The grandson dropped out of school, and he wants to take the money out of the plan.
    Does he have report the withdrawal as income, since he never took the deduction on the state return
    or do I pick up the interest earned and appreciation.\Please any suggestions will be helpful.
    Thanks
    Kenneth Zweibel CPA
    516-639-0858

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    Kenneth Zweibel
    KENNETH J. ZWEIBEL, CPA PC
    East Northport NY
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  • 2.  RE: nys 529 plan

    Bronze Most Valuable Member
    Posted 08-11-2021 08:42 AM
    Ken

    As a nonqualified distribution, Yes, you pick up the interest and appreciation for both Federal and NYS. I believe they both come get reported as other ordinary income. Your software should automatically do this.

    Jerry

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    Gerald S. Cohen, CPA
    cell 516 455-0643



    Original Message


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