West Virginia taxpayers may deduct all of that year's total contributions to a SMART529 plan from their West Virginia Personal Income Tax return. This deduction is for contributions made during the calendar year for which the return is filed (deductions are subject to recapture if distributions are non-qualified).
Earnings on contributions are tax-deferred, and are income tax free if funds from the plan are used for qualified education expenses, including tuition, certain room and board expenses and necessary fees and supplies.* See the Offering Statement for more information.
* Non-qualified withdrawals are taxable as ordinary income to the extent of earnings and may also be subject to a 10% federal income tax penalty.
1For West Virginia residents, investment minimums are lower. Please see the Offering Statement for details.
SMART529 is offered by the West Virginia Prepaid Tuition and College Savings Program Board of Trustees and is administered by Hartford Life Insurance Company.
Investments in SMART529 are not guaranteed or insured by the State of West Virginia, the Board of Trustees of the West Virginia College Prepaid Tuition and Savings Program, the West Virginia State Treasurer's Office, Hartford Life Insurance Company, The Hartford Financial Services Group, Inc., the investment sub-advisors for the Underlying Funds or any depository institution and are subject to investment risks, including the loss of the principal amount invested, and may not be appropriate for all investors.
If investors reside in or have taxable income in a state other than West Virginia, they should consider whether that state has a qualified tuition program that offers favorable state income tax or other benefits exclusive to their state's program that are not available under the SMART529 program.
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice.
Investors should carefully consider the investment objectives, risks and charges and expenses of SMART529 and its Underlying Funds before investing. This and other information can be found in the Offering Statement for SMART529 and the prospectuses or other disclosure documents for the Underlying Funds. Please read them carefully before investing or sending money. SMART529 college savings plans are distributed by Hartford Funds Distributors, LLC. Member SIPC
"The Hartford" is a registered trademark of Hartford Fire Insurance Company.
"SMART529" is a registered trademark of West Virginia Prepaid Tuition and College Savings Program Board of Trustees.
"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries.