“To amend the Internal Revenue Code of 1986 to provide for lifelong learning accounts, and for other purposes.”
No CRS summary available for this bill.
This section renames Coverdell education savings accounts as Coverdell lifelong learning accounts throughout the Internal Revenue Code (i.e., in IRC §§26, 72, 135, 408A, 529, 530, 877A, 4973, 4975, and 6693 and related headings and tables of sections) and deems any account established before January 1, 2024, and designated under the prior name as a Coverdell lifelong learning account. It further expands qualified expenses for tax-free distributions to include qualified educational or skill development expenses incurred after the beneficiary attains age 16, specifically (1) training services under the Workforce Innovation and Opportunity Act (WIOA), career and technical education under the Carl D. Perkins Career and Technical Education Act of 2006, specified career services and youth activities under WIOA, or adult education under the Adult Education and Family Literacy Act; (2) related transportation; (3) testing for enrollment or certification; and (4) computer software, equipment, fiber optic cable, or internet services used primarily for such activities. (Thus, these accounts—previously limited primarily to K-12, higher education, and certain special needs expenses—may now fund post-secondary workforce skill development tax-free.)