Pension-reform legislation passed late Friday by the U.S. House of Representatives would make permanent a current law that allows families to withdraw funds from college-savings accounts tax-free, according to Savingforcollege.com, a Web site that tracks the plans. The provision excluding qualified withdrawals from federal tax is scheduled to expire on December 31, 2010. Lifting the tax exclusion’s expiration date is a major priority for supporters of the plans, who say that the uncertainty has prevented many families from investing in the plans and has impeded their growth (The Chronicle, September 9, 2005). The outlook for the bill in the Senate is unclear, however, as lawmakers tussle over an unrelated bill that would raise the minimum wage and cut estate taxes for wealthy families (The Chronicle, July 30).
July 31, 2006
House Passes Bill That Would Be Boon to College-Savings Plans
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