Increased Tax Relief for Education Expenses from 529 Accounts
This new law doubles the amount that can be withdrawn from 529 savings accounts for qualified higher education expenses, from $10,000 to $20,000 annually. This means greater financial support for students and their families, helping to cover education costs without additional tax burdens. The changes will take effect from 2026.
Key points
The withdrawal limit from 529 accounts for education increases from $10,000 to $20,000 per year.
Greater tax savings for families funding higher education.
Changes will apply to taxable years beginning after December 31, 2025.
Status:
Introduced
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