Jul 08 2014
Washington, D.C. – U.S. Senator Deb Fischer (R-Neb.) announced today she has offered legislation to help middle class families afford rising education costs. The Allocating for Children’s Education (ACE) Act, would increase the annual contribution limit for Coverdell education savings accounts from $2,000 to $5,000 per beneficiary, enabling parents to earn more money for their children’s education. Currently, families can set aside savings in a Coverdell account to pay for expenses like education-related technology, tuition, or tutoring. When funds are withdrawn from the Coverdell account and used for qualified educational expenses, they are entirely tax-free. As a result, families who regularly contribute to Coverdell accounts can save thousands of dollars over the long-term.
Senator Fischer released the following statement:
“All parents face mounting educational costs, from rising tuition to expenses associated with valuable extracurricular activities and school supplies. Meanwhile, a shrinking economy has resulted in smaller family budgets and less money available for worthwhile academic expenses. The ACE Act helps families earn more money while responsibly saving for their children’s education. I’m pleased to introduce this commonsense measure to help middle class families and strengthen communities in Nebraska and nationwide.”
Qualified elementary and secondary education expenses currently include:
- Tuition, fees, academic tutoring;
- Special needs services;
- Books, supplies, and other equipment for students enrolled in public, private, religious school, or qualifying home school states;
- Expenses for the purchase of any computer technology or equipment or Internet access and related services.
The full text of Fischer’s legislation is available online HERE.