The Secure Act stands for “Setting Every Community Up for Retirement Enhancement” and includes changes that can affect all taxpayers, young and old. When the SECURE Act was signed into law, its main focus was on retirement savings. But the Act also features revisions to the way you can use the funds in your 529 Plan.
Originally designed to cover qualified education expenses, you can now use the 529 Plan for distributions to pay student loans and apprenticeships. The SECURE Act allows up to $10,000 to be taken from a 529 plan to repay student loans. State tax benefits to the 529 Plan do vary. The tax professionals at Storen Financial can walk you through various scenarios to best maximize those funds. Read more about how you can use the distributions and then give us a call. We are happy to help.
You Can Now Use A 529 Plan To Repay Student Loans
Article from Forbes.com
The Setting Every Community Up for Retirement (SECURE) Act was signed into law on Friday, December 20, 2019. The Act, which was the most significant piece of retirement legislation introduced in over a decade, includes provisions to help individuals save more for retirement and achieve financial security. The SECURE Act also features important changes for education savings, including expanding 529 plan benefits. Click here to read this article.