Section 127 Plans: A Tax-Smart Way To Pay For Education Or Student Loans

MoneyTaxesEditors' PickSection 127 Plans: A Tax-Smart Way To Pay For Education Or Student LoansEmployer-provided educational assistance plans under section 127 of the tax code can offer up to $5,250 in tax-free benefits for employees. Here’s what you need to know.ByKelly Phillips Erb,Senior Writer. Kelly Phillips Erb is a Forbes senior writer who covers tax.Follow AuthorApr 21, 2026, 02:54pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.@font-face{font-family: "Schnyder"; src: url("https://i.forbesimg.com/assets/fonts/schnyders/schnyders-bold-webfont.woff2") format("woff2"), url("https://i.forbesimg.com/assets/fonts/schnyders/schnyders/schnyders-bold-webfont.woff") format("woff"); font-weight: 700; font-style: normal;} @font-face{font-family: "Merriweather"; src: url("https://i.forbesimg.com/assets/fonts/merriweather/merriweather-bold-webfont.woff2") format("woff2"), url("https://i.forbesimg.com/assets/fonts/merriweather/merriweather-bold-webfont.woff") format("woff"); font-weight: 700; font-style: normal;} @font-face{font-family: "Graphik"; src: url("https://i.forbesimg.com/assets/fonts/graphik/graphik-bold.woff2") format("woff2"), url("https://i.forbesimg.com/assets/fonts/graphik/graphik-bold.woff") format("woff"); font-weight: 700; font-style: normal;} @font-face{font-family: "Schnyder"; src: url("https://i.forbesimg.com/assets/fonts/schnyders/schnyders-light-webfont.woff2") format("woff2"), url("https://i.forbesimg.com/assets/fonts/schnyders/schnyders-light-webfont.woff") format("woff"); font-weight: 400; font-style: normal;} @font-face{font-family: "Merriweather"; src: url("https://i.forbesimg.com/assets/fonts/merriweather/merriweather-regular-webfont.woff2") format("woff2"), url("https://i.forbesimg.com/assets/fonts/merriweather/merriweather-regular-webfont.woff") format("woff"); font-weight: 400; font-style: normal;} @font-face{font-family: "Graphik"; src: url("https://i.forbesim...