Senator Cory Gardner (R-CO) has introduced an amendment to expand 529 tax preferred saving accounts to be used for K-12 education. ATR urges a YES vote on this amendment.
529 savings plans have already helped middle class families invest in their children’s futures. These plans currently 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.
Because these plans allow parents to provide a college education for their child at the school of their choice, they are extremely popular. Already, there are 13 million 529 accounts, saving families $300 billion. 77 percent of these plans are from families who make $150,000 or less.
Expanding 529 accounts to include K-12 education will allow parents to send their child to the best school for their child. This choice will also help the public and private schools, encouraging them to become stronger schools due to increased competition.
ATR urges a YES vote on this amendment.