To amend the Internal Revenue Code of 1986 to permit qualified business trade expenses to be treated as qualified higher education expenses for purposes of 529 accounts.
Impact
The bill's implementation is expected to have a significant impact on tax laws regarding educational funding, particularly in how individuals can utilize 529 accounts. By expanding the definition of qualified expenses, it allows for a broader interpretation of what counts as education-related spending. This could lead to a greater number of beneficiaries accessing funds for business expenses they might previously have viewed as excluded, thus potentially increasing the utility of 529 plans in supporting vocational and trade education.
Summary
House Bill 9984 aims to amend the Internal Revenue Code of 1986 by allowing qualified business trade expenses to be treated as qualified higher education expenses for the purposes of 529 accounts. This legislative change is designed to provide greater flexibility for individuals who are designated beneficiaries of 529 plans, enabling them to allocate funds towards business-related costs that meet specific criteria. Such costs would include specified tangible property essential for certain business fields as defined by the bill, promoting a connection between education and practical business needs.
Contention
While the bill is likely to receive support from those advocating for practical educational expenses, some challenges may arise regarding the definition and classification of 'qualified trade fields' and the nature of expenses that can be claimed under this new designation. Concerns could be raised about ensuring that the expanded definition does not lead to misuse or misinterpretation of funds, which could ultimately undermine the original intent of 529 accounts aimed at supporting higher education.
To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.
A bill to amend the Internal Revenue Code of 1986 to increase the limitation on distributions from 529 accounts for qualified higher education expenses.
To amend the Internal Revenue Code of 1986 to treat distributions from health savings accounts for funeral expenses of the account beneficiary as qualified distributions.
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