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529 Plan Flexibility: Tax-Free Withdrawals for Student Transportation and Parking.

This bill expands how families can use their 529 education savings plans. Citizens will now be able to make tax-free withdrawals from these accounts to cover reasonable transportation and parking expenses related to attending college or participating in apprenticeship programs. This change provides greater financial flexibility for daily educational costs.
Key points
529 savings can now be used tax-free to pay for transportation costs (including parking) to an eligible educational institution.
The new rules also cover transportation and parking expenses related to participating in approved apprenticeship programs.
The amount allowed for transportation expenses is limited by the allowance set by the educational institution itself.
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Additional Information
Print number: 118_HR_8438
Sponsor: Rep. McClellan, Jennifer L. [D-VA-4]
Process start date: 2024-05-16
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to permit qualified distributions from section 529 plans for certain transportation and parking expenses.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8438.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-05-16.

What are the main provisions?

Key points include:

  • 529 savings can now be used tax-free to pay for transportation costs (including parking) to an eligible educational institution.
  • The new rules also cover transportation and parking expenses related to participating in approved apprenticeship programs.
  • The amount allowed for transportation expenses is limited by the allowance set by the educational institution itself.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. McClellan, Jennifer L. [D-VA-4].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Education