New Lifelong Learning Accounts: Tax Benefits for Job Training and Skill Development.
This Act renames Coverdell Education Savings Accounts to Lifelong Learning Accounts, significantly broadening their use beyond traditional college expenses to include job training, career services, and skill development courses. The changes allow adults up to age 70 to contribute and potentially deduct these contributions, supporting continuous professional development and career changes. Furthermore, employers receive a tax credit for contributing to their employees' accounts.
Key points
Education Savings Accounts (CESA) are renamed Lifelong Learning Accounts (CLLA), expanding eligible uses to include vocational training, career services, and skill development programs.
The age limit for contributions is raised from 18 to 70, allowing adults to save for skill development throughout their working lives.
A new 25% tax credit is introduced for employers who make contributions to their employees' Lifelong Learning Accounts.
Individuals aged 18 and older can now deduct their contributions to these accounts from their taxable income.
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