Bill 119 s 152, also known as the "529 Expansion for Education Act," aims to amend the Internal Revenue Code of 1986 to allow funds from a 529 savings account to be used for kindergarten through 12th grade educational expenses. Currently, 529 savings accounts are primarily used for college expenses, but this bill seeks to expand the allowable uses of these accounts to cover educational costs for students in earlier grades.
The bill would enable parents and guardians to use funds from their 529 savings accounts to pay for a variety of educational expenses, including tuition, fees, books, supplies, and equipment for students in kindergarten through 12th grade. This would provide families with more flexibility in how they save and pay for their children's education, potentially easing the financial burden of private school tuition or other educational costs.
Supporters of the bill argue that expanding the allowable uses of 529 savings accounts to cover K-12 expenses would help families better prepare for and afford their children's education at all levels. They believe that this change would provide families with more options for saving and paying for education, ultimately benefiting students and their families.
Opponents of the bill may argue that expanding 529 savings accounts to cover K-12 expenses could disproportionately benefit wealthier families who are more likely to have these accounts. They may also raise concerns about the potential impact on state tax revenues, as 529 savings accounts are often used as a tax-advantaged savings tool.
Overall, Bill 119 s 152 seeks to provide families with more options for saving and paying for their children's education by allowing funds from 529 savings accounts to be used for kindergarten through 12th grade expenses. The bill is currently under consideration in Congress, and its potential impact on education and tax policy will continue to be debated.