U.S. Reps. Lynn Jenkins (R-KS) and Ron Kind (D-WI) discussed the importance of the continued emphasis on 529 Savings Plans to help families save money for college on 529 College Savings Day Friday.
H.R. 529, legislation to modernize, expand and strengthen the savings plans, was introduced by Jenkins and Kind in January. The bill quickly moved through the House, passing with a strong bipartisan vote of 401-20.
“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.” 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.”
A companion bill was introduced in the Senate by Sens. Chuck Grassley (R-IA), Bob Casey (D-PA), Richard Burr (R-NC), Mark Warner (D-VA), Pat Roberts (R-KS) and Ben Cardin (D-MD). The measure recently passed 26-0 out of the Senate Finance Committee, but has not yet moved to the next step in the legislative process.
“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,” Kind said. “This program helps hardworking parents save money to afford to send their children to college.”
The legislation would improve 529 savings plans in a number of ways. It would allow students to use their savings for computers and other required educational technology, removes an obsolete aggregation rule, and would allow taxpayers to re-deposit refunds from colleges without incurring taxes or penalties.
“529 plans in Iowa and across the country have helped millions of families afford a quality college education,” 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.”