Legislation that would make permanent a current law that allows families to withdraw funds from college-savings accounts tax-free is on its way to President Bush, who is expected to sign it.

The savings-account provision, part of a larger pension-reform bill, HR 4, that was approved by the Senate late Thursday by a vote of 93 to 5, also would preserve the tax exclusion at the state level in the many states that piggyback on federal law. Preserving the exclusion, which had been set to expire on December 31, 2010, was a major priority for supporters of the plans, who say the uncertainty has dissuaded families from investing in the accounts. The bill passed the House of Representatives last week (The Chronicle, July 31).

More information about the college-savings-plan exclusion can be found at Savingforcollege.com, a Web site that tracks the plans.