How do I Report My 529 Plan for Oregon?

If you contributed to an Oregon 529 plan during the year, you may qualify for the Oregon Higher Education Savings Plan Account Contributions Credit. If you took money out of the account, you may need to report an adjustment or tax recapture if the withdrawal wasn't used for qualified education expenses. 

What Is Oregon's 529 Plan?

Oregon's college savings program helps families sav for future education expenses. The former Oregon College Savings Plan was rebranded as Embark and is administered through Upward Oregon. Oregon taxpayers may also have accounts through the MFS 529 Savings Plan. 

Qualified expenses can include:

• College and university tuition.
• Community college expenses.
• Trade and vocational schools.
• Graduate school programs.
• Registered apprenticeship programs.
• Certain qualified education-related expenses allowed under federal law. 

Can I Claim a Credit for My Contributions?

Yes. Oregon offers a refundable credit for contributions made to an Oregon Higher Education Savings Plan account.

For 2026:

• Maximum credit of $190 for most filing statuses.
• Maximum credit of $380 for Married Filing Jointly filers.
• The credit percentage is based on your adjusted gross income (AGI). 

Because the credit is refundable, you may receive a benefit even if you owe little or o Oregon tax.

How Do I Enter the Oregon 529 Credit?

To enter a qualifying contribution:

1. Go to State.
2. Select the three-dot menu (Edit) for the Oregon return.
3. Select Credits.
4. Select Refundable Credits.
5. Enter the contribution information in Oregon Higher Education Savings Plan Account Contributions Credit.

The program will calculate the allowable Oregon credit based on your contribution and income.

What If I Took Money Out of My 529 Account?

Qualified withdrawals generally remain tax-free when used for eligible education expenses.

However, if you used the money for a nonqualified purpose, Oregon may require:

• A tax recapture of a previously claimed credit.
• An addition to income for certain previously deducted amounts. 

Examples of nonqualified withdrawals can include using funds for expenses that don't met federal or Oregon requirements.

Can I Roll 529 Funds to a Roth IRA?

Federal law allows certain 529 funds to be rolled into a Roth IRA under qualifying circumstances. Eligibility and annual limits are determined under current federal rules. Before making a rollover, review the federal requirements regarding account age, beneficiary eligibility, and annual contribution limitations.

Can I Deposit My Oregon Refund Into a 529 Account?

Yes. Oregon allows you to deposit all or part of your state tax refund directly into an eligible Embark or MFS 529 Savings Plan account.

To do this:

1. Go to State.
2. Select the three-dot menu (Edit) for the Oregon return.
3. Select Payments.
4. Select Oregon 529 College Savings Plan.
5. Complete the Oregon College Savings Plan section.

Direct Deposit Requirements

• You must already have an existing Embark or MFS 529 Savings Plan account.
• You may split your refund between up to four accounts.
• The minimum deposit is $25 per account.
• The total deposit cannot exceed your available Oregon refund.