New bipartisan legislation wants to make it easier for workers to access plans to pay for college, and for employers to support them.
The aptly named "529 and ABLE Account Improvement Act" was introduced by Reps. Lynn Jenkins (R-Kan.) and Ron Kind (D-Wis.) to enhance Section 529 college savings plans and ABLE accounts.
The legislation would encourage better access to 529 and ABLE accounts — tax incentive savings plans designed to help workers better prepare for the future.
The bill would:
- Encourage employers to contribute to 529 college savings plans and ABLE accounts through tax incentives. These incentives also aid employer start-up costs for these accounts.
- Remove penalties for using 529 funds to pay student loans and contribute to charity.
- Repeal an IRS interpretation of a rule that restricts the amount of times a family can redirect the investment of their 529 or ABLE account.
