Detroit Free Press: Bill would allow parents to save $10,000 a year for college

WASHINGTON — Two Michigan congressmen are proposing legislation that woulld allow families to save even more for their children's college costs.

The bill proposed by U.S. Reps. Tim Walberg, R-Tipton, and Dan Kildee, D-Flint Township, would increase from $2,000 to $10,000 a year the amount families can invest in Coverdell Savings Accounts for higher education.

The legislation would also increase the age of eligibility to withdraw amounts from the accounts from 18 to 22.

Coverdell accounts are structured so that investment results are tax-free, though taxes are paid on the contributions. The beneficiary does not owe tax on the distributions as long as they are less than his or her qualified expenses for higher education.

To read the full article, please click here.