529 plans provide middle class Americans the best means to save for college educations. The tax-free provision for 529s provides a tremendous incentive to place money inside these plans to meet the increasing costs of college. Eliminating tax-free distributions would significantly harm Americans' ability to save for college.
Also, current law limits the number of investment changes that can be made in a 529 account to one per year. This limits the flexibility that Americans have regarding how they invest the money saved.
This petition asks that:
1.) Distributions from 529 plans remain tax-free as long as they are used for qualifying educational expenses; and
2.) Language of the Code pertaining to 529 plans change to allow for more than one investment change per calendar year.