Bill > HR464

This bill, known as the Skills Investment Act of 2025, proposes significant changes to Coverdell Education Savings Accounts, renaming them "Coverdell Lifelong Learning Accounts" and expanding their usage beyond traditional educational expenses. The bill allows individuals aged 16 and older to use these accounts for various skill development and workforce training programs, including career services, technical education, adult literacy activities, and related expenses like transportation, certification testing, and technology purchases. Key modifications include raising the age limit for contributions from 18 to 70, increasing contribution limits for individuals over 30 (up to $4,000 annually), and implementing a $10,000 account balance limit after age 30. The legislation also introduces a new tax credit for employers who make nonelective contributions to these accounts for their employees, offering a 25% credit for such contributions. Additionally, the bill allows beneficiaries over 18 to deduct contributions to their accounts and increases the tax penalty for non-qualified withdrawals from 10% to 20%. These changes are designed to support lifelong learning and skills development by providing more flexible and accessible financial resources for individuals seeking continued education and workforce training. The provisions will generally take effect on January 1, 2026.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/464/all-info