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Washington, DC – Today, Congressman Brett Guthrie (KY-02) voted in support of H.R. 529, legislation to strengthen 529 college savings plans.

“The cost of a college education continues to rise, but there are ways to prepare for the financial undertaking,” said Congressman Guthrie.  “With two children in college and a third only a short time away, I know how necessary it is to plan ahead and save money for children’s college education.”

Families from all financial backgrounds take advantage of 529 college savings plans.  Since their introduction, the number of plans has skyrocketed to nearly 12 million.  President Obama recently included a provision in his budget to tax these accounts, but quickly retracted after broad, bipartisan opposition.

“I’m glad President Obama changed his mind on this new tax, and he needs to understand how valuable these tax-free plans are for hard-working American families.  Whether it’s to pay for books or room and board, 529 college savings plans play a crucial role in enabling our young people to pursue a higher education,” said Congressman Guthrie.

H.R. 529 will allow students to use their savings to buy computers, as well as allow funds to be re-deposited, tax-free and without penalty, should a student withdraw from college early.

“Whether it’s to attend a four-year college or university, community college, graduate school, or a technical school, 529s allow families to invest precious resources wisely.  529s offer parents an important tool to prepare for their children’s future, and those efforts should be encouraged and made more accessible, not discouraged by another tax hike on American families,” added Congressman Guthrie.

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