Proposed Bill by Sen. Rand Paul (R-KY) Would Result in Tax Free Distributions from Solo 401k Plans and IRAs

While it is only a proposed bill and it would need to be approved by both the House and Senate before passing, Sen. Rand Paul (R-KY) is proposing in the Higher Education Loan Payment and Enhanced Retirement (HELPER) Act to allow for distributions from IRAs and qualified plans such as solo 401k plans to pay for qualified education expenses or student loan repayment.

Here is what the HELPER ACT would do:

  • Allow Americans to annually take up to $5,250 from a 401(k) such as a solo 401k or IRA — tax and penalty free — to pay for college or pay back student loans. These funds could also be used to pay tuition and expenses for a spouse or dependent.


  • Enable two parents and a child, for example, to put over $15,000 in pre-tax funds in one year toward tuition or loan repayment if each set aside the maximum.


  • Offer workers the choice to have an employer contribution to a 401(k) count as a Roth contribution.


  • Repeal the current-law cap and phase-out of the student loan interest income tax deduction



About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


  • Popular Video

  • ROBS 401k Funding Process

  • Solo 401k Contributions Including Mega

  • Checkbook IRA LLC

  • About MySolo401k

    We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities.
    Learn more

    Connect with us

  • We’re here to help.

    Call: 800-489-7571


    8:00 am - 4:00 pm PT

    Why us?