Groom principal Jeff Witt was featured by the American Society of Pension Professionals & Actuaries (“ASPPA”) in the article, “The IRS Student Loan Match Guidance Could Use Additional Clarity,” where he offered insight into guidance from the Internal Revenue Service (“IRS”) on the student loan match provision included in SECURE 2.0.
ASPPA reported that, according to Witt, “‘You have to have an obligation to pay the loan,’ in order to receive a match for payments. Simply paying off someone else’s loan voluntarily won’t qualify you for a match, ‘you have to be on the hook for it.’”
The outlet further reported that Witt said that “normally a co-signer does not expect to have to pay someone else’s loan and he expects that few of these arrangements would qualify, though the IRS should be clearer about this.”
ASPPA noted that he explained that “the IRS is likely trying to be flexible with the various loan terms that exist, especially in private loan arrangements. All the same, ‘this is not the pinnacle of clarity, there are going to be comments.’”
ASPPA included that, when asked if the student in question was a dependent at the time the loan was taken but not at the time the repayment was made by their parent many years later, Witt said that “that’s an open question.”
To read the article, click here.
