State 529 Plans - CT specifically

Technical topics regarding tax preparation.
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MA
Had a client call who was talking to someone who came from their accountant. CT allows for $10,000 deduction (married filing joint) per family for contributions to the state CHET plan. There is nothing in the law that says the funding has to stay in the account for a minimum period of time.

So that is accountant basically has all of his clients contribute the $10,000 to the CHET (let's say in July) and then withdraw the amounts and pay the college bills when they come due in August. I know some 529 plans have high front end load fees (5.75%) which would defeat the practice but CT has low fees.

Do other states offer the same opportunity? Does anyone have a list of state that make it worth your while?

This was honestly the first I had heard of using this but for a $600 tax break it might make sense.
 

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