Lets people use tax-advantaged savings for more job training and skill development.
This bill would rename Coverdell Education Savings Accounts to Coverdell Lifelong Learning Accounts. It would let people use these accounts for a wider range of job training and skill development, not just traditional education. It also changes age limits for contributions and creates new tax benefits for employers and adult beneficiaries.
Today, Coverdell Education Savings Accounts (ESAs) are primarily for K-12 and college expenses, with annual contributions limited to $2,000 per beneficiary until age 18, and a 10 percent additional tax on non-qualified withdrawals. After this bill, these accounts would be called Coverdell Lifelong Learning Accounts and could be used for a wider range of job training and skill development for people aged 16 and older. Contributions could be made until age 70, and for beneficiaries over age 30, the annual limit would increase to $4,000, though contributions would stop if the account balance exceeds $10,000. The additional tax on non-qualified withdrawals would also increase to 20 percent.
S 3217 · 119th Congress · November 19, 2025 · AI Summary by gemini-2.5-flash · 8/10
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