Freedom to Invest in Tomorrow’s Workforce Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill, the Freedom to Invest in Tomorrow’s Workforce Act, expands the types of expenses that can be tax-free withdrawn from 529 college savings plans. Specifically, it allows withdrawals to cover tuition, fees, books, and other costs associated with obtaining recognized postsecondary credentials, such as industry certifications, apprenticeships, or professional licenses. These credentials must be identified as reputable by state or federal agencies.
Key provisions
- Allows tax-free withdrawals from 529 plans for tuition, fees, books, and supplies related to postsecondary credentialing programs.
- Defines ‘qualified postsecondary credentialing expenses’ to include testing fees and continuing education fees.
- Establishes criteria for what constitutes a ‘recognized postsecondary credential program,’ including state lists, the Department of Veterans Affairs’ WEAMS system, and Secretary-identified programs.
- Recognized postsecondary credentials include industry-recognized certifications, apprenticeship completion certificates, and professional licenses.
- The Secretary of Labor, in consultation with the Secretary of Education, will determine which programs are considered reputable.
- The bill expands the definition of qualified higher education expenses under 529 plans.
- Distributions eligible under this bill will apply after the bill’s enactment date.
Who is affected
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Sponsors
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