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Section 529 Plan

A tax-advantaged savings plan designed to encourage saving for future education costs. Earnings grow tax-free, and withdrawals are tax-free when used for qualified education expenses.

Internal Revenue Code of 1986

The main body of tax law for the United States, administered by the Internal Revenue Service (IRS).

Qualified Higher Education Expense

Specific costs that are allowed to be paid for with funds from a 529 plan without incurring taxes or penalties. This bill expands the definition of these expenses.

Designated Beneficiary

The student or individual for whom a 529 savings plan is established and whose education expenses the funds are intended to cover.

Center-based child care provider

A child care service provided in a commercial facility or dedicated center, typically with multiple staff members caring for a group of children.

Family child care provider

A child care service typically provided in a private residence by a single caregiver or a small team, often caring for a smaller group of children than a center.