529 College Savings Plans - New Law Expands Benefits

Good news for individuals who have remaining 529 plan funds. The SECURE Act, which became law on December 20th, expands the benefits of 529 college savings plans. Now families can use the plan for student loan repayment as well as pay for costs associated with apprenticeship programs. These are now categorized as qualified expenses. 

The aggregate lifetime limit is $10,000 in qualified student loan repayments per 529 plan beneficiary and $10,000 per each of the beneficiary's siblings. Principal and interest payments toward a qualified education loan will be considered qualified 529 plan expenses. The change in policy provides families with greater flexibility in spending their 529 plan money. 

To learn more about 529 plans in Iowa, or to start an account, visit https://www.collegesavingsiowa.com/.

Jessica - ICAN Ankeny Center