Two members of Congress have introduced a bill to boost savings plans for students.
Rep. Lynn Jenkins, R-Kansas, and Rep. Ron Kind, D-Wis., proposed H.R. 529, the 529 and ABLE Account Improvement Act, to encourage more savings in tax-advantaged 529 college plans and ABLE (Achieving a Better Life Experience) accounts for individuals with disabilities.
This bill aims to get employers to contribute to 529 plans and removes penalties for using funds in these plans to pay for loans. “This bipartisan, common-sense bill will continue to strengthen 529 plans, an increasingly popular college savings plan, so all students will have the opportunity to continue their education and achieve their dreams,” said Jenkins in a statement.
“By creating incentives for parents to invest in tax-free 529 college savings plans, like an employer-matching program and the ability to use the money to pay for educational tools, we are leveling the playing field for hardworking Wisconsin parents and students,” explained Kind, in a press release.