WASHINGTON, D.C.– Recently, Congresswoman Lynn Jenkins (R-KS) and Rep. Ron Kind (D-WI) introduced H.R. 529, the 529 and ABLE Account Improvement Act, to enhance 529 college savings plans and ABLE accounts. This legislation would encourage better access to 529 and ABLE accounts - tax incentive savings plans designed to help folks better prepare for the future. After introducing the bill, Congresswoman Jenkins released the following statement:

“As a mother of two, I understand, first-hand, how important it is to start saving for our children’s education,” said Congresswoman Lynn Jenkins. “That’s why I, along with Congressman Kind, introduced a bill to expand 529 plans and allow hard-working families to better plan ahead for the high costs of college. This bill will improve the program by encouraging employers to contribute to 529 plans and removing penalties for using the funds to pay for loans. This bipartisan, commonsense bill will continue to strengthen 529 plans, an increasingly popular college savings plan, so all students will have the opportunity to continue their education and achieve their dreams.”

“With far too many hard-working Wisconsin families feeling the pinch when it comes to affording to send their children to a university or technical college it is important that we take action to help ease the burden. By creating incentives for parents to invest in tax-free 529 college savings plans, like an employer matching program and the ability to use the money to pay for educational tools, we are leveling the playing field for hard-working Wisconsin parents and students,” said Congressman Kind.

The 529 and Able Account Improvement Act provisions include:

• 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.
• Removes 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.