Education Planning and the SECURE Act: Creating a Tax Law Paradox

Abstract

This article explains how some provisions related to section 529 college savings plans in the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 conflict with existing tax law provisions, and provides policy change recommendations to help eliminate that conflict. If amendments to these provisions are not made, the level of complexity surrounding education planning could increase despite the fact that proper planning would ultimately benefit investors.

Keywords: secure act, 529 plans, student loans, tax policy, education planning

JEL Classification: H24, K34, I22, I28, D31