student loan debt
Hello Terry and associates, my name is Jimmy. I have both a son and daughter who each have their own 529 savings accounts, namely Merrill Edge. Each account has money available for loan payment.
I want to pay-off my daughter loan off first.
Can I use some, money (a portion) from my son Merrill Edge account to pay off my daughter loan balance.
I am thinking of using $ 4000.00 of my sons’ account balance to pay off my daughter’s loan balance.
Is this allowed?
Can I redeem a portion of my son’s balance to pay off his sisters’ balance?
any IRS rules to be followed?
Thank you.
Terry Says
I’m going to refer you to this page at SavingForCollege.com: https://www.savingforcollege.com/article/strategies-for-using-a-529-plan-to-repay-student-loans
I’m not an expert in this subject, but from this link, it appears you can do that — up to $10,000 per beneficiary.
I’m wondering why you would want to raid the second child’s account to pay for the first! Someday your well-educated second child might wonder why there was less money left for him/her!
