(Washington, DC) – The Main Street Partnership today applauded the House of Representatives for passing legislation that will make 529 College Savings Plans a more attractive way to save for higher education.
H.R. 529 is a bill designed to improve the 529 student college savings plans expenses that will encourage American families to set money aside for higher education. The legislation was championed by U.S. Rep. Lynn Jenkins (R-KS) who was instrumental its passage through the House.
“Thanks to Congressman Lynn Jenkins for putting in the time and effort to get this bill passed. Making college more affordable by encouraging families to save money for a college education,” said Main Street Partnership’s Chief Operating Officer Sarah Chamberlain. “529 college savings plans are extremely popular with Americans and the improvements being made to enhance and strengthen them will make them even more appealing to the millions of people that are looking for ways to save their money in order to manage the ever-inflating costs of higher education.”
This bill amends the Internal Revenue Code to: (1) allow payments from qualified tuition programs (529 plans) for the purchase of computer or peripheral equipment, computer software, or Internet access and related services to be used primarily by the beneficiary while enrolled in an eligible educational institution; (2) eliminate the requirement that distributions from a 529 plan be aggregated for purposes of determining the amount includible in a taxpayer’s income; and (3) allow a tax-free recontribution to a 529 plan of amounts refunded to a student by an eligible educational institution if the recontribution is made not later than 60 days after the date of such refund and does not exceed the refunded amount.
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