arrow_back Back to App

New lifelong learning accounts and tax benefits.

This act renames and expands Coverdell Education Savings Accounts into Coverdell Lifelong Learning Accounts. This means funds can be used for a wider range of training and skill development, not just traditional education. Additionally, employers can receive tax credits for contributions to these accounts for their employees, and individuals can deduct their own contributions from their taxes.
Key points
Coverdell Education Savings Accounts are renamed to Coverdell Lifelong Learning Accounts.
Eligible expenses are expanded to include vocational training, skill development courses, related transportation, certification tests, computer equipment, and internet access.
The age limit for contributions is increased to 70, and contributions up to $10,000 are allowed after age 30, with an annual contribution limit of $4,000 for those over 30.
Employers can receive a 25% tax credit for contributions made to their employees' accounts.
Individuals over 18 can deduct their contributions to these accounts from their taxes.
The penalty for improper use of funds from the account increases from 10% to 20% of the distribution.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_464
Sponsor: Rep. Thompson, Glenn [R-PA-15]
Process start date: 2025-01-15
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Skills Investment Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_464.

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 2025-01-15.

What are the main provisions?

Key points include:

  • Coverdell Education Savings Accounts are renamed to Coverdell Lifelong Learning Accounts.
  • Eligible expenses are expanded to include vocational training, skill development courses, related transportation, certification tests, computer equipment, and internet access.
  • The age limit for contributions is increased to 70, and contributions up to $10,000 are allowed after age 30, with an annual contribution limit of $4,000 for those over 30.
  • Employers can receive a 25% tax credit for contributions made to their employees' accounts.
  • Individuals over 18 can deduct their contributions to these accounts from their taxes.
  • The penalty for improper use of funds from the account increases from 10% to 20% of the distribution.
What is the specific legal status?

The current status is Introduced.

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. Thompson, Glenn [R-PA-15].

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 2025-12-23.

CATEGORIES

Taxes Education Labor