Columbia News

U.S. Senator Eric Schmitt (R-MO) has announced that his provision to increase the investment cap for 529 education savings plans has been signed into law. The change raises the cap from $10,000 to $20,000 and is part of the One Big Beautiful Bill. This development aims to allow parents greater ability to invest in their children's education and expand school choice.

Senator Schmitt stated, "Every child, no matter their zip code or background, deserves a quality education that equips them with the tools and knowledge they need to thrive. By doubling the investment cap for 529 savings plans and giving parents more flexibility, we are expanding school choice and making it easier for families to invest in their children’s success. This is about empowering families and promoting educational freedom, and I am proud to see my commonsense effort signed into law."

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education expenses. It offers tax-free growth and withdrawals for qualified costs like tuition and school supplies. The new provision allows families to contribute up to $20,000 towards school tuition.

In addition, Senator Schmitt's ENABLE Act was also signed into law. This act enhances the program by permitting families to roll over 529 savings into an Achieving a Better Life Experience (ABLE) account permanently for individuals with disabilities.