05.29.15

529 Accounts Help Families in NC Save for Children’s Future

WASHINGTON – Today marks National 529 College Savings Day to increase awareness of 529 plans. In February, Senators Richard Burr (R-NC), Bob Casey (D-PA), Chuck Grassley (R-Iowa), Mark Warner (D.VA), Pat Roberts (R-KS) and Ben Cardin (D-MD) introduced companion legislation to H.R. 529 to enhance the already successful Section 529 college savings plans. The bill recently passed 26-0 out of the Senate Finance Committee.

H.R. 529 was introduced by Representatives Lynn Jenkins (R-KS.) and Ron Kind (D-WI.) in the House of Representatives in January. H.R. 529 quickly passed the House with a sweeping bipartisan vote of 401-20. 

“College savings accounts allow parents to save for their children’s future. Additionally, thanks to the ABLE Act, parents can also save for a disabled child's future care,” said Senator Burr. “This legislation brought forward by both the House and Senate will allow some additional flexibility to help these accounts administratively function better.  I hope we will swiftly pass this commonsense, bipartisan legislation after the President’s attempt earlier this year to kill this very popular program.”

“As students from all over the country struggle with spiraling tuition costs,  we must do everything we can to encourage families to plan ahead and save for their children’s future.” Congresswoman Jenkins said. “The House listened to the American people and passed my legislation with nearly unanimous support to strengthen and expand 529 college savings plans. I am proud to mark 529 Day as a champion of this important college savings tool, and I encourage the Senate to quickly pass this legislation.”

“Helping more Wisconsin students afford a college education is a top priority, which is why I have worked to expand the 529 college savings program. This program helps hardworking parents save money to afford to send their children to college," Congressman Kind stated.

“529 plans in Iowa and across the country have helped millions of families afford a quality college education,” Senator Grassley said. “Our bill builds on this success and strengthens these plans going forward.  The Senate ought to pass the bill as soon as possible so we can get this proposal on the President’s desk.” 

“529s are one of the most effective vehicles middle class families have to save for their child's college education," Senator Casey said. "This legislation will build on the success of 529s so more families can enjoy their benefits."

“529 plans have been an important part of helping Virginia families finance their children’s educations,” Senator Warner said.  “The Senate should pass our bipartisan bill to strengthen the ability of Virginians to save for college.”

The House and Senate legislation would improve 529 savings plans by empowering students to use their savings for computers, eliminates an outdated and unnecessary aggregation rule, and allows taxpayers to re-deposit refunds from colleges without taxes or penalties.