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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This new law doubles the amount that can be withdrawn from 529 savings accounts for qualified higher education expenses, from $10,000 to $20,000 annually.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.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_2206
Sponsor: Sen. Schmitt, Eric [R-MO]
Process start date: 2025-06-30
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

A bill to amend the Internal Revenue Code of 1986 to increase the limitation on distributions from 529 accounts for qualified higher education expenses.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_2206.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-06-30.

What are the main provisions?

Key points include:

  • 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.
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 Sen. Schmitt, Eric [R-MO].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

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 Family