Congressman Leonard Lance (NJ-07) today supported H.R. 529, bipartisan legislation that expands, improves and modernizes tax-free 529 college savings plans:
“Today, the House of Representatives acted in a bipartisan fashion to expand the popular 529 college savings plans and provide greater flexibility to Garden State families who are saving for college. At a time when tuition has skyrocketed and so many are struggling to pay for higher education, today’s legislation will help make college more affordable for many middle-class families families,” said Lance.
H.R. 529 makes three important improvements to enhance tax-free 529 college-savings plans:
1. Modernizes 529 plans by adding computers to the list of qualified expenses;
2 Allows funds to be re-deposited without taxes or penalties if a student withdraws early for medical reasons and obtains a refund from the school; and
3. Removes unnecessary paperwork burdens that date back to before withdrawals from 529 plans became tax-free.
“These reforms will allow more hard-working Americans to save for their children’s college education,” concluded Lance.