Proposed Tax Changes Could Make 529s More Flexible
The Boost Saving for College Act could entice more people to contribute to 529 plans.
Some proposed changes to tax legislation were recently introduced that could make 529 accounts more flexible. These changes could also help make college saving easier and more affordable for low- and middle-income households.
The Boost Saving for College Act, which was introduced by Sens. Richard Burr, R-N.C.; Bob Casey, D-Pa.; and Lisa Murkowski, R-Alaksa, would amend the Internal Revenue Code to modify the tax treatment of 529 plans. Here's a look at how some of the proposed changes would work, and their implications for 529 account holders.