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.
More information on this new legislation will be provided in the near future.
As always, we encourage you to consult a qualified tax advisor about your personal situation.
Important: On September 13, 2019, the Hartford Global All-Asset 529 Fund was removed as an individual portfolio option and the assets were moved into the existing The Hartford SMART529 Balanced Portfolio. As a result, Account Owners were moved from the Hartford Global All-Asset 529 Fund into The Hartford SMART529 Balanced Portfolio.
SMART529 is offered by the West Virginia Prepaid Tuition and College Savings Program Board of Trustees and is administered by Hartford Funds Management Company, LLC (“HFMC”).
Investments in SMART529 are not guaranteed or insured by the State of West Virginia, the Board of Trustees of the West Virginia College Prepaid Tuition and Savings Program, the West Virginia State Treasurer's Office, HFMC, The Hartford Financial Services Group, Inc., the investment sub-advisors for the Underlying Funds or any depository institution and are subject to investment risks, including the loss of the principal amount invested, and may not be appropriate for all investors.
The Hartford SMART529 is available to all investors. West Virginia (WV) provides certain tax advantages to WV taxpayers that invest in The Hartford SMART 529. Before investing, an investor should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, your clients should consult their own tax or legal counsel for advice.
Investors should carefully consider the investment objectives, risks and charges and expenses of SMART529 and its Underlying Funds before investing. This and other information can be found in the Offering Statement for SMART529 and the prospectuses or other disclosure documents for the Underlying Funds. Please read them carefully before investing or sending money. SMART529 college savings plans are distributed by Hartford Funds Distributors, LLC. Member SIPC
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"SMART529" is a registered trademark of West Virginia Prepaid Tuition and College Savings Program Board of Trustees.
"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries.