529 deduction: YesTax parity: No — CollegeBound Saver only
In-state plan only
Most states that offer a 529 tax break limit it to their own in-state plan, and Rhode Island is one of them. To claim the Rhode Island deduction, contributions go to CollegeBound Saver, the state's own 529 plan — money put into another state's plan earns no Rhode Island tax break. Nine "tax-parity" states work the other way and give the break for any state's plan; the list is below.
The deduction
Rhode Island account owners can deduct up to $500 a year (individual filers) or $1,000 (married filing jointly) for contributions to CollegeBound Saver, the state's own 529 plan. Contributions above the cap can be carried forward and deducted in future years. The deduction may be recaptured on a nonqualified withdrawal or a transfer to another state's program. Limits change yearly — confirm the current figure with the Rhode Island plan.
How it fits with the gift-tax rules
A 529 contribution is also a gift for federal purposes, so it counts toward the $19,000 annual exclusion (2026). The 5-year election ("superfunding") lets you front-load up to $95,000 per donor per child without using any lifetime exemption.
See how much you can front-load with the 529 Superfunding Calculator, and keep family contributions within the exclusion with the Gift Tax Calculator.
529 deductions & credits in other states
Tax-parity states let you deduct contributions to any state's 529 plan; the rest limit the benefit to their own plan.
Tax parity: Arizona · Arkansas · Kansas · Maine · Minnesota · Missouri · Montana · Ohio · Pennsylvania
Own-plan deduction or credit: New York · New Jersey · Connecticut · Massachusetts · Vermont · Illinois · Indiana · Michigan · Wisconsin · Iowa · North Dakota · Virginia · Maryland · District of Columbia · West Virginia · Georgia · South Carolina · Colorado · New Mexico · Utah · Idaho · Oregon · Oklahoma · Alabama · Mississippi · Louisiana · Nebraska
General information, not tax advice. 529 deduction rules and limits change yearly and this page may not reflect the latest figure — confirm with the Rhode Island plan and your CPA. Rhode Island limits the deduction to CollegeBound Saver as of recent guidance.
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