529 OPTIONS Act Would Allow Savings to Be Spent on Training Instead of College – IOTW Report

529 OPTIONS Act Would Allow Savings to Be Spent on Training Instead of College

WFB: Congress will vote on bipartisan legislation that would allow families to invest in jobs training through funds that were previously limited to college education.

Reps. Donald Norcross (D., N.J.) and Mike Kelly (R., Pa.) sponsored the 529 OPTIONS Act as a vehicle for parents of young Americans to set aside money in investment accounts designed to cover the costs of tuition. The 529 system allows investors to cash out tax-free to pay for education expenses, but the reform will expand it to include the costs of apprenticeship. The tax reform bill enacted by the Trump administration in 2018 expanded access to 529 funds to include primary education, such as private and parochial schools. Rep. Norcross, the only electrician in Congress, said those tax breaks need to be expanded beyond the narrow bubble of college education.

“Right now, students and families can use 529 tax-free savings accounts for college, but they can’t use those same savings accounts for registered apprenticeships,” Norcross said in an email. “This exclusion is unfair and counterproductive.”

The 529 reform has since been rolled into the SECURE Act, a bill aimed at shoring up multi-employer pension plans by easing access for small employers. It would allow 529 accounts to be used to pay for registered apprenticeship programs, as well as the materials, including books and equipment, necessary for the job. Offsetting these costs would help young people to enter the workforce with adequate training without the barriers and debt that have saddled recent generations. Norcross said policymakers should support all kids equally, not just the college-bound.

“It sends the wrong message to youth and our families, since education should never be ‘one-size-fits-all,'” he said. “We need electricians and computer programmers, just like we need doctors and judges—and this bill levels the playing field for the students and future workers who start out in apprenticeships.” read more

11 Comments on 529 OPTIONS Act Would Allow Savings to Be Spent on Training Instead of College

  1. Color me skeptical anytime the government steps in to help. I know a few guys, pipe fitters and electricians, who went through apprenticeships and joined the unions. Most voted for and loved Barry. A few others saw their union dues used against their political affiliation. Right to work anyone? And who opposes that? Well I’ll be damned it’s the democraps.

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  2. Good idea… in theory. But, in reality, government grants and tax breaks will always attract scoundrels. Watch for unions to jump on this and the price of apprenticeships to increase exponentially.
    However, I still think it’s a wonderful idea and might provide society with a few desperately needed tradespeople –and provide them with some despetately overdue respect.

    @Toenex: Vouchers ESPECIALLY (not even) for the homeschooled.

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