New Federal Law Changes to 529 College Savings Plans
New provisions have been signed into law impacting qualified expenses for apprenticeships and student loan repayments
SALEM, Ore. – On December 20, 2019 the Further Consolidated Appropriations Act (which contains the SECURE Act) was signed into law. This act includes a few new provisions that expand on the benefits of your Oregon College Savings Plan account.
Apprenticeships
Under the SECURE Act, tax-free distributions from your Oregon College Savings Plan account can be used to pay for qualified higher education expenses associated with apprenticeship programs. Programs must be registered and certified with the Secretary of Labor under the National Apprenticeship Act (29 U.S.C. 50).
Qualified expenses include:
- Fees
- Books
- Supplies
- Equipment required for participation
Student Loan Repayments
The SECURE Act now allows you to use tax-free distributions from your Oregon College Savings Plan account to use towards principal or interest repayments on any qualified education loan up to $10,000 for the beneficiary or a sibling of the beneficiary—up to a $10,000 lifetime maximum, per person.
As every account owner’s situation is unique, it’s always best to consult your tax advisor to see how this new legislation may impact you personally.
The provisions in this Act only apply to distributions made after December 31, 2018. To read the full text of the Act, download the PDF.
If you have any questions regarding your Oregon College Savings Plan account, feel free to get in touch. Call us Mon–Fri from 6am–5pm PT at 1-866-772-8464 or 1-844-888-2253 (TTY).