On January 17, the New York State Department of Taxation and Finance issued a preliminary report on various aspects of the new federal tax law. Within that report, the Dept. of Tax & Finance states “it appears that distributions [of 529 funds] for K-12 tuition expenses would not be considered qualified distributions under...New York statutes.” Accordingly, any New York State tax benefits would be recaptured at the time a distribution is made from a NY 529 account to fund K-12 expenses (ie: the NY tax deduction and any earnings on contributions would be subject to NY tax).