Lets people use tax-free savings accounts for job training and skill development.
This bill would let people use their tax-advantaged savings accounts, currently called Coverdell Education Savings Accounts, for a wider range of job training and skill development. It would also allow older adults to contribute more and for longer, and give employers a tax credit for helping employees save for skills. However, the penalty for using the money for non-approved expenses would double.
Today, Coverdell Education Savings Accounts are mainly for K-12 and college expenses, with a $2,000 annual contribution limit for beneficiaries under age 18. This bill would rename them "Coverdell Lifelong Learning Accounts" and let people use them for job training and skill development after age 16. It would also allow contributions up to age 70, increase the annual limit to $4,000 for those over age 30 (with a $10,000 account balance cap), and provide new tax benefits for employers and beneficiaries, while doubling the penalty for non-qualified withdrawals.
HR 464 · 119th Congress · January 15, 2025 · AI Summary by gemini-2.5-flash · 8/10
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3 filings mentioned this bill
Amounts reflect total quarterly lobbying spend reported to the Senate, not bill-specific spending. Source: Senate LDA filings.