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I have a 529 account in Michigan for my children. It is tax free on withdrawals for higher education cost. I recently moved into another state, so I am still debating whether I should keep the Michigan 529 account or rollover it to the new 529 that I set up in the other state.

One question I have is the tax implications. Assuming I keep the Michigan account and continue contributing to it, when I withdraw the money for college fees, do I have to pay state tax in Michigan or the other state? Since I moved, I am no longer a Michigan resident at that time.

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  • Can you clarify: are you proposing that the withdrawal would happen in the same tax year as the contribution, or would this be later in some future tax year?
    – C8H10N4O2
    Jun 18, 2020 at 18:08
  • Withdrawal would happen much later. It would still be many years until my children go to college.
    – fhcat
    Jun 18, 2020 at 20:15

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