Measure would expand 529 accounts to include K-12 students

The measure proposed Thursday would expand 529 savings accounts to include K-12 students.

House Resolution 675, the “Empowering Parents to Invest in Choice,” or EPIC Act, would enable parents to use the untaxed accounts to pay for education before college.

U.S. Rep. Patrick McHenry of North Carolina, R-10th District, introduced the measure Jan. 24 in recognition of National School Choice Week.  

“Ensuring a good educational foundation for your children is among each parent’s greatest concerns in life,” said McHenry. “Yet today, rising costs have made it increasingly difficult for parents to achieve this goal.”

The legislation also would raise savings limits on Coverdell accounts, another type of tax-free investment used for college or elementary/secondary school expenses. Coverdell accounts allow savings of up to $2,000. That cap would change to $12,000.

North Carolina’s 529 savings account program allows deposits of up to $450,000 in each fund. Under H.R. 675, any money saved in a 529 account would — in addition to covering college expenses — become eligible to fund private school tuition and fees, tutoring, books, and special needs services.

“By allowing parents to save tax-free via 529 accounts, this legislation provides children the opportunity to attend the school of their choice, while also increasing access to important educational resources like books, tutors, or special needs services,” McHenry said. “A strong education is vital for children’s success in life, and this bill gives parents an important tool to invest in their development.”