ATR Supports Bill Improving 529 College Savings Plans
The U.S. House of Representatives will soon vote on H.R. 529, a bill to improve 529 college savings plans. ATR supports this legislation and urges members to vote for it.
529 savings plans help middle class families achieve the American dream. These plans allow parents to invest after-tax earnings into a plan that collects interest, and can later be spent tax-free on their children’s college education. As of 2014, an average of $21,000 has been invested in nearly 12 million accounts.
The proposed legislation, introduced by Representative Lynn Jenkins (R-Kan.), will make several important improvements to 529s. The bill allows computers to be purchased using funds drawn from an account, streamlines the paperwork burden, and allows money withdrawn from a 529 to be redeposited without penalty if a student withdraws from school due to illness or for other personal reasons.
Today, a college education is as important as it has ever been. H.R. 529 will strengthen college savings plans to help ensure that a college education remains an affordable and realistic goal for middle class families.