Bill > S3217

This bill modifies the existing Coverdell Education Savings Accounts, renaming them "Coverdell Lifelong Learning Accounts" and significantly expanding their scope and usage. The legislation allows individuals to use these accounts for skill development and workforce training expenses, not just traditional education costs, with a particular focus on services for individuals over age 16. Key changes include increasing the age limit for contributions from 18 to 70, raising the contribution limit for individuals over 30 to $4,000, and permitting account balances up to $10,000 for those over 30. The bill also introduces a new tax credit for employers who make non-elective contributions to an employee's lifelong learning account, offering a 25% credit for such contributions. Additionally, the bill creates a tax deduction for individuals who are designated beneficiaries of these accounts and have reached age 18, and increases the tax penalty for non-qualified withdrawals from 10% to 20%. These changes aim to provide more flexible financial support for ongoing skills training and education throughout an individual's career, with the amendments set to take effect on January 1, 2026.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3217/all-info