529 Plans as a Student Loan Repayment Strategy

Lucas and Luna explore a lesser-known 529 plan strategy: using leftover 529 funds to repay student loans after graduation. They walk through the $10,000 lifetime limit per beneficiary under the Tax Cuts and Jobs Act, how it interacts with the state tax deduction on contributions, and what happens if the beneficiary doesn't need the funds. The episode drills into a concrete example: a family in New York that saved $50,000 in a 529, but their child earned a scholarship covering most tuition. The hosts break down the tax implications of using the excess for loan repayment versus taking a non-qualified withdrawal. They also flag the SECURE 2.0 provision that allows rollovers to Roth IRAs as a competing option. A must-hear for parents worried about overfunding a 529. #529Plan #StudentLoans #CollegeSavings #TaxCutsAndJobsAct #StudentLoanRepayment #QualifiedExpenses #SECURE2.0 #RothIRA #Overfunding529 #Scholarship #FinancialAid #EducationFunding #TaxStrategy #PersonalFinance #FexingoBusiness #BusinessPodcast #TheCollegeSavingsPodcast #Podlet Keep every episode free: buymeacoffee.com/fexingo