KCTV

By Sarah Motter

WASHINGTON, D.C. (KCTV) - A bill has been introduced in the U.S. Senate to allow 529 savings accounts to be used for skills training and certification programs.

U.S. Senator Roger Marshall (R-Kan.) has announced that he joined Sen. Amy Klobuchar (D-Minn.) to introduce the Freedom to Invest in Tomorrow’s Workforce Act, which would give workers the freedom to use their 529 savings accounts for skills training, certification programs and credentialing.

“Back home, not a day goes by that I don’t hear about the workforce shortages across the state. We have high-paying jobs at the ready but struggle to find qualified employees. Our bill helps fill these workforce gaps and empowers Kansans to pursue non-traditional educational opportunities more easily,” said Sen. Marshall. “Allowing 529 funds to be used beyond a four-year education makes sense. Whether it’s a bachelor’s degree or an apprenticeship opportunity, 529 savings plans need to be flexible to meet the growing demands of our workforce.”

Marshall noted that 529 plans are tax-advantaged investment vehicles to encourage saving for future higher-education expenses. Money that goes into these accounts gets taken out pre-tax for qualified expenses connected to higher education and tuition.

“Workforce training is key to expanding opportunity and growing our economy by providing workers with the tools and resources they need to succeed,” said Senator Klobuchar. “By allowing Americans to use their ‘529′ educational savings to pay for training and certification outside of a four-year degree, our bipartisan legislation will enable more people to access these valuable programs and open doors to good-paying jobs.”

Currently, the Senator indicated that the law only allows families to use 529 accounts to pay for college, university or vocational school costs.