Latest / The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs
529 Plans Can Now Cover Student Loan Refinancing
In this episode, Lucas and Luna explore a recent change in 529 plan rules: you can now use up to $10,000 in 529 funds to refinance student loans for the beneficiary and even siblings. They break down how the Secure 2.0 Act expanded the definition of qualified expenses, walk through the tax implications and potential state tax recapture, and compare using 529 money for refinancing versus leaving it invested for future education costs. They also discuss strategies for maximizing the benefit, such as timing the distribution to align with income. By the end, you'll know exactly how to use…
The skinny
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