Legislation was introduced Tuesday to make permanent the tax-free treatment of qualified withdrawals from 529 college savings plans.
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Reps. Melissa Hart, R-Pa., and Earl Pomeroy, D-N.D., both members of the tax-writing House Ways and Means Committee, introduced the bill. They were joined at a press conference by a bipartisan group of committee members.
In 2001, Congress enacted tax cuts that included tax-free treatment for withdrawals from 529 plans to pay the costs of higher education. The cuts, however, are scheduled to expire after 2010. The bill would make the 529 tax break permanent.
