Bill > S2206

This bill proposes to modify the Internal Revenue Code of 1986 by increasing the distribution limit for 529 accounts, which are tax-advantaged savings accounts designed to help families save for educational expenses. Specifically, the bill would raise the annual distribution limit from $10,000 to $20,000 for qualified higher education expenses. The change would take effect for taxable years beginning after December 31, 2025, meaning the increased distribution limit would first apply to the 2026 tax year. By doubling the allowable distribution amount, the bill aims to provide families with more flexibility in using their 529 account funds to cover educational costs, potentially making it easier for students and families to finance higher education.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2206/all-info