A bill to amend the Internal Revenue Code of 1986 to increase the limitation on distributions from 529 accounts for qualified higher education expenses.

# Summary of S. 2206: 529 Education Savings Account Expansion **What the Bill Would Do** This bill would increase how much money families can withdraw from 529 college savings accounts each year for education expenses. Currently, 529 plans allow account owners to take out money tax-free for qualified education costs like tuition and fees, but the bill seeks to raise the annual withdrawal limits. The specific new limit amount is not detailed in the information provided, but the goal is to give families greater access to their saved education funds. **Who It Affects** This bill primarily affects families who use 529 accounts—tax-advantaged savings plans designed to help pay for college and other education costs.

The change would benefit middle and upper-income families who have saved money in these accounts and want to use more of it annually for their children's education expenses. **Current Status** S. 2206 is currently in committee, meaning it has been introduced but has not yet been voted on by the full Senate. The bill was sponsored by Senator Eric Schmitt (R-MO). For the bill to become law, it must advance through committee, pass a Senate vote, move through the House, and receive the President's signature.