Three Senators joined forces on Sept. 12 to introduce the BoostSaving for College Act, legislation that Sen. Richard Burr, R-N.C.,says is a “common-sense bill that will give families more optionsfor preparing their children for college without going into endless debt.”

The bill, S. 1790, introduced by Burr as well as Sen. BobCasey, D-Pa., and Lisa Murkowski, R-Ark.:

• Provides a tax credit to low- and middle-income families whomight not ordinarily save for college;

• incentivizes employers to match employee contributions to theircollege savings;

• allows unused savings to be rolled over into a Roth IRA; and

• enables families with a disabled child to roll over unused fundsfrom their 529 account into an ABLE account.

“College savings accounts are a great way to safely put awaymoney to ensure a better future for your child,” Burr said in astatement. “I have long advocated for making college moreaffordable through several bills, such as the legislation to reduceinterest rates for student borrowers” that he authored with Sen.Angus King, I-Maine.

This bipartisan legislation has been endorsed by 14 highereducation associations, including the American Council on Education andthe North Carolina State Education Assistance Authority(SEAA).

The senators state that today, a degree from a two-yearinstitution typically costs more than $19,000, and one from afour-year institution typically costs nearly $100,000.

The Boost Act would allow employers to offer a match of up to$1,000 a year to 529 plan contributions, the senators explained intheir joint statement.

The employer match would be excluded from the employee’s grossincome, which means the worker won’t be taxed when their employermakes a contribution to a 529 account owned by the employee orspouse. The beneficiary of the 529 account may be the employee,their spouse or their dependent.

The act would also allow families to roll over unused collegefunds or scholarships into a Roth IRA, with the caveat being thatthe 529 account must have been open for at least 10 years.

The 529 could be rolled over into the Roth IRA of the 529account owner or their beneficiary.

Families with a disabled child that have funds “trapped in a529” would be allowed to roll the account to a 529A, or ABLE, account to coverdisability-related expenses. Families would be taxed on withdrawalsotherwise.