SECURE Act Allows 529 Plans to Repay (Some) Student Loan Debt

SECURE Act Allows 529 Plans to Repay (Some) Student Loan Debt

The American College of Financial Services
401KSpecialst
January 20, 2020

While many effects of the SECURE Act, including elimination of stretch IRAs and allowing more part-time workers to start saving for retirement, have been widely publicized and examined, what’s a bit more murky is whether it could potentially help college students with their loan debt.

Before the SECURE Act was passed late last year, existing financial 529 plans couldn’t be used to pay down student debt, but now, they can. Ross Riskin, Assistant Professor of Taxation at The American College of Financial Services, says it all depends on what state lawmakers decide to take from the SECURE Act--and what they choose to let slide.

Read more of his commentary, and about how the Act interacts with 529 plans, in the latest article from 401KSpecialist!

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