SECURE Act – 529 College Plan

Happy Late Monday my Beautiful Women Supporting Women,

I hope you had a great weekend.  As I shared with all of you a few weeks ago, my Mother had major back surgery.  I’m happy to announce, that with the power of prayer, she came home from the Rehabilitation Center today.  It was exactly 2 weeks to the day.  I am blessed to be able to spend this quality time with her.  My weeks have been a whirlwind, but God saw me through it!  I will be back on track next week. #Thankful

Last week I introduced The SECURE Act and some of the changes that were put into place.  Remember, you can take up to $5,000 from your retirement plan, without a 10% IRS penalty, when either adopting or giving birth.  FYI: This must be done within a year of the event.

Today, I will discuss the enhancement to the 529 College Savings Plan under The SECURE Act.  The 529 College Savings Plan can now cover additional educational expenses. The 529 balances can now be applied towards certain student loan debt, income tax and penalty tax free, up to $10,000. This option is great for families that find themselves with reserves after a dependent’s education is completed. These funds can also be distributed to fund an apprenticeship (trade schools).  What a major win for parents who could ONLY use the funds to pay for an accredited college before the change.  With the lift of certain restrictions, more families may find 529 College Savings Plans a more attractive option.

Next Up: Stretch IRA – What is the definition and what does the change mean to us?

If you have any questions, please feel free to post here or via email at: thefinancialcomforter@gmail.com.

As always, thank you for reading.

Have a beautiful and blessed start to Lent season.

Marsha

Changing the lives in our community….one family at a time

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