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119-s-2206119th CongressWALLET
A bill to amend the Internal Revenue Code of 1986 to increase the limitation on distributions from 529 accounts for qualified higher education expenses.
Sponsored By: Senator Schmitt, Eric [R-MO]
Introduced
Summary
Doubles the annual tax-free 529 withdrawal cap to $20,000. This bill would raise the maximum amount that can be taken tax-free from 529 education savings accounts for qualified higher education expenses from $10,000 to $20,000 per year. It aims to give families more flexibility paying college costs and would apply to tax years beginning after December 31, 2025.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Higher 529 withdrawal limit for families
If enacted, this bill would raise the yearly tax-free 529 distribution limit used for college expenses from $10,000 to $20,000. You would be able to withdraw up to $20,000 per beneficiary per year for qualified higher education expenses. The change would apply to tax years beginning after December 31, 2025.
Sponsors & CoSponsors
Sponsor
Schmitt, Eric [R-MO]
MO • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov