New legislation, the Skill Savings Account Act, would call on the Internal Revenue Service to create tax-advantaged accounts allowing employees and others to save for qualified education expenses.
Skill savings accounts could be used for "workforce development opportunities including apprenticeships, online courses, credentials, short or long-term community college and university courses, bootcamps, certificates, skill accelerators, and more to give workers the opportunity to reskill and upskill throughout their careers," according to Reps. Glenn Thompson, R-Pa., and Suzanne Bonamici, D-Ore., sponsors of the bill, H.R. 8714.
Employers, family and friends, government agencies, tax authorities and community investment organizations can contribute to the accounts. Account balances may not exceed $50,000.
Total employer contributions can't exceed $5,250, with total employee contributions limited to $10,000 in a calendar year. The accounts are portable and "follow the individual worker throughout their working life," the lawmakers said in a statement.
Michele Stockwell, president of Bipartisan Policy Center Action, said that "expanding access to flexible, worker-centered learning opportunities is essential to building a stronger workforce and a more competitive economy, and BPC Action is proud to support this effort."
Erin Koeppel, managing director, government relations and public policy at the Certified Financial Planner Board of Standards, told ThinkAdvisor Monday in a statement that while the group has not reviewed the Skill Savings Account Act, it is "happy to see the focus on developing sustainable workforces."
The board championed legislation introduced last year, the Freedom to Invest in Tomorrow's Workforce Act, that was included in the One Big Beautiful Bill Act, which expanded the eligible uses for 529 plans to include certifications.
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