Dear Liz: I have a 529 plan for my niece who has now graduated from college. She has stude...

How a 529 plan can help with education loans after graduation – Los Angeles Times

Dear Liz: I have a 529 plan for my niece who has now graduated from college. She has student loan debt and would like to use the money left in the 529 account to pay this debt. Is this allowable without incurring penalties?Answer: Yes, up to $10,000.The Setting Every Community Up for Retirement Enhancement Act, or SECURE Act, of 2019 allows a beneficiary a lifetime limit of $10,000 to repay the beneficiary’s student loans, including federal and most private loans, without taxes or penalties. An additional $10,000 can be used to repay student loans held by each of the beneficiary’s …

 

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