Two lawmakers introduced a bi-partisan bill last Tuesday that would permanently preserve the tax exemption on qualified withdrawals from 529 college savings plans, the so-called sunset provision that is set to expire after 2010.
Representatives Melissa Hart (R-Pa.) and Earl Pomroy (D-N.D.), both members of the House Ways & Means Committee, seek to eliminate the sunset provision on reforms enacted in 2001 that mitigate the rising costs of college education through tax-free withdrawals.
The Hart-Pomroy Bill aims to ensure that current 529 plan participants will not be punished unnecessarily for making good investment decisions today to help their children achieve their educational goals in the future.
The College Savings Foundation, a Washington-based not-for-profit organization, applauded the move as an auspicious beginning in the fight to make the 2001 reforms permanent.
We are hopeful that Congress will move promptly in the months to come to make the 2001 529 plan reforms permanent, said Chairman David Pearlman.
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