Miller Votes for Legislation to Expand and Strengthen 529 College Savings Accounts

Statement

Today, Rep. Candice Miller (MI-10) issued the following statement on House passage of H.R. 529, legislation that amends the U.S. Tax Code to expand and strengthen 529 tax-free college savings accounts:

"Parents and grandparents want their children to get the best possible education and have the greatest opportunity for success. One way to ensure that opportunity exists is to plan ahead and save, and that is exactly what nearly 12 million families who currently participate in 529 tax-free college savings plans are doing. 529 plans are an important tool for middle-class families working to make sure that, when the time comes, they have enough money to send their children to college, which is why I was shocked when President Obama proposed taxing them earlier this year when he unveiled his FY 2016 budget.

"Our anemic economic recovery has made it difficult for many Americans to climb out of debt, especially students and recent graduates. In fact, the total outstanding student loan debt in the U.S. is estimated to be a massive $1.16 trillion. Today, the House voted on commonsense legislation that strengthens and expands the 529 program so that it remains a viable, tax-free option that helps families plan ahead and save for college."

H.R. 529 expands and strengthens the tax-free 529 Savings Plans by:

Empowering students to use their 529 savings for computers, reflecting the modern reality that a computer is a necessity for today's college student;

Eliminating an outdated and unnecessary aggregation rule required when the funds are distributed that increases paperwork and costs on plan administrators; and,

Allowing taxpayers to re-deposit refunds from colleges without taxes or penalties.

Source