U.S. Senate Finance Committee Votes To Make 529 Plans More Flexible
Ohio 529 Plan Applauds Progress
COLUMBUS, Ohio, May 1, 2015 /PRNewswire/ -- The U.S. Senate Finance Committee voted to make 529 programs more flexible for families who are saving for higher education expenses. The Senate Finance Committee voted on S. 335, the companion bill to H.R. 529. The bill now moves to the full Senate for further debate. The bill was created to help make 529 plans more flexible by adding computers as a higher education expense; along with the redeposit of college funds without incurring negative tax implications on the account contributor. The vote passed unanimously.
"On behalf of the families invested in Ohio's CollegeAdvantage 529 savings program, we thank all of the co-sponsors of S.335 and the members of the Senate Finance Committee. Over the past 25 years, Ohio's 529 Plan has served more than 750,000 past, present, and future college students in Ohio and across the country. Today, the Senate's support demonstrates strong commitment to helping even more families save for college to support the educational, career, and life dreams of their children," said Paul Paeglis, Executive Director of the Ohio Tuition Trust Authority.
To date there are more than 12 million accounts open totaling $250 billion invested in 529 plans across the country. The Ohio 529 Plan has over 644,000 accounts currently. The 529 plan was created to help families save for higher education expenses and help reduce the need for student loans. Adding computers (which all students need) as a higher education expense and making the programs more flexible will make 529 plans even more appealing to American families.
Named after Section 529 of the Internal Revenue Code, 529 plans are taxed-advantaged ways to save for higher education. Funds saved in a 529 plan are tax-free when used to pay higher education expenses. Higher education expenses currently include tuition, fees, books and room and board.
About the Ohio Tuition Trust Authority/CollegeAdvantage: CollegeAdvantage is Ohio's 529 college savings program, offered and administered by the Ohio Tuition Trust Authority, a state agency under the Office of the Chancellor of the Ohio Board of Regents. CollegeAdvantage is offered as the CollegeAdvantage Direct 529 Savings Plan and the CollegeAdvantage Advisor 529 Saving Plan which is offered and marketed through BlackRock. The CollegeAdvantage program, which offers families a tax-advantaged way to save for college, currently has more than $9.45 billion in assets under management as of March 31, 2015. To learn more, visit www.CollegeAdvantage.com or see this "By the Numbers" Infographic or a history of CollegeAdvantage.
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SOURCE CollegeAdvantage
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