Minor but hopefully helpful change to 529 plans

[jym626]

https://www.forbes.com/sites/katiepf/2019/12/21/you-can-now-use-a-529-plan-to-repay-student-loans/#60d025114aab You can now use up to $10K for college loan repayment from a 529. Better than nothing, I suppose.

One of the most common concerns parents have about opening a 529 plan is having leftover funds after the beneficiary graduates from college…The SECURE Act expands the definition of qualified higher education expenses to include student loan payments and costs of apprenticeship programs, leaving more options for families

Nice problem- to have $ leftover in the 529

[jym626]

And to clarify,

529 plan account owners may now withdraw up to $10,000 tax-free for payments toward qualified education loans. However, there is no double-dipping when it comes to federal education tax benefits. Any student loan interest paid for with tax-free 529 plan earnings is not eligible for the student loan interest deduction.

[MaineLonghorn]

MODERATOR’S NOTE: There is already a thread on this topic. http://talk.qa.collegeconfidential.com/financial-aid-scholarships/2168054-secure-act-and-double-dipping-with-loans-and-529s.html#latest