Rep. Patrick Meehan (R-PA) praised the recent passage of a bipartisan bill that will strengthen popular 529 college savings accounts.
The plans are named for Section 529 of the U.S. Tax Code, and are tax-advantaged investment accounts to help parents save money for their children's college education.
“The rising cost of tuition is putting college beyond the reach of too many middle-class families, and 529 plans have been an effective way for struggling families to make the dream of higher education a reality,” Meehan said. “Not only does this bipartisan legislation make important updates to the existing law, but it also reaffirms Congress’s clear intent that tax-advantaged 529 plans be around to help middle-class families for a long time to come.”
Under current law, parents can set up 529 accounts and deposit funds into an account for their children. When the students go to college, the funds can then be withdrawn to pay for tuition, fees, books, room and board.
The bill passed by the House removes some paperwork requirements, and makes computers eligible for purchase with 529 funds. The bill also allows funds to be redeposited if a student withdraws from school within first two months due to illness or other qualified reasons.
The House passed the bill by a vote of 401-20.
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