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Congress passed the SECURE Act expanding 529 plan qualified expenses

On December 20, 2019 Congress passed legislation that included expanding the definition of qualified higher education expenses. Section 529 of the Internal Revenue Code now includes expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under the National Apprenticeship Act.

Qualified education expenses also was expanded to include repayment of qualified student loans up to $10,000. This includes amounts of repaid principal and interest on any qualified student loan of either a 529 plan designated beneficiary or a sibling of the designated beneficiary.

West Virginia state code does not provide for the inclusion of Apprenticeship Programs as a Qualified Higher Education Expense. This means under current law, earnings associated with distributions for these programs would be subject to West Virginia tax but exempt from Federal tax. Consult a tax professional for further information.

As always, we encourage you to consult a qualified tax professional about your personal situation.