Which of the following correctly completes the sentence? Qualifying contributions to Section 529 plans:

1)Are deductible on the federal return but may need to be added back into state income.

2)Qualify for a federal credit, and a state credit may be available equal to a percentage of the federal credit.

3)Do not provide a tax advantage on the federal or any state return in the year of contribution but may be deductible when distributed.

4)Are not deductible on the federal return but may be deductible or eligible for a credit at the state level.