Distributions from 529 Plans Now Allowed for Student Loan Repayments

Distributions from 529 Plans Now Allowed for Student Loan Repayments

Effective January 1, 2020, qualified distributions can be paid out of 529 education savings accounts to cover costs associated with registered apprenticeship programs and to repay up to $10,000 of qualified student loan debt.

Qualified student loan withdrawals have a lifetime cap of $10,000 for any individual, and can be used to repay qualified student loans of the designated beneficiary, or any siblings of the designated beneficiary.

This change, effective January 1, 2020, is one of the many provisions in the SECURE Act that may affect you. For a description of some additional provisions in the SECURE Act, please visit our website.